Which of the Following Statements Is Most Correct

question 17

Multiple Choice

Which of the following statements is most correct?

• A)An increase in a firm's debt ratio, with no changes in its sales and operating costs, could be expected to lower its profit margin on sales.
• B)An increase in DSO, other things held constant, would generally lead to an increase in the total asset turnover ratio.
• C)An increase on the DSO, other things held constant, would generally lead to an increase in the ROE.
• D)In a competitive economy, where all firms earn similar returns on equity, one would expect to find lower profit margins for airlines, which require a lot of fixed assets relative to sales, than for fresh fish markets.
• E)It is more important to adjust the Debt/Asset ratio than the inventory turnover ratio to account for seasonal fluctuations.

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Definitions:

Prejudice

Unfavourable attitude towards a social group and its members.

Behavioural Component

The aspect of attitude that relates to how one intends or is disposed to behave towards an object, person, or situation.

Group Membership

The affiliation or association with certain groups which can significantly influence individuals' beliefs, behaviors, and sense of identity.

Dehumanisation

Stripping people of their dignity and humanity.