Which of the Following Firms Would Be Expected to Have

question 38

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high operating efficiency?

• A) a brokerage firm that has high levels of leverage
• B) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• C) a high-end fashion retailer that has a very high markup on all items it sells
• D) a grocery store chain that has very high turnover, selling many multiples of their assets per year

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Definitions:

Stakeholders

Individuals or groups with an interest or concern in the success and operations of an organization or project.

Organizational Decisions

Choices made by individuals or groups within an organization that influence its activities and direction.

Ethical Questions

Queries that involve debates or considerations about what is morally right or wrong in a given situation.

Subunits

Refers to smaller divisions or components within an organization, each with specific roles or functions.