Return on Equity Compares

question 16

Multiple Choice

Return on equity compares

• A)the market price of the company's stock to its dividend policy.
• B)a company's earnings to the dividends paid for the year.
• C)the profits of a company to the investment made by its shareholders.
• D)the profits of a company to the selling price of each share of stock.

---

Definitions:

Negligence

An unintentional, careless act or omission that causes injury to another person or his property.

Sale of Goods Act

Legislation governing the sale of goods, providing rights and obligations for both buyers and sellers.

Goods and Services

Tangible products and intangible activities offered to consumers or businesses in the marketplace.

Caveat Emptor

“Let the buyer beware”; a principle that the purchaser must examine, judge, and test for herself.