When a Company Can Leverage Funds at a Rate That

question 130

True/False

When a company can leverage funds at a rate that is less than the after-tax return on assets,the return on equity will exceed the return on assets.

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Definitions:

Feelings of Equity

Perceptions of fairness in treatment, rewards, and workload among individuals or groups.

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, and to strive to succeed.

Affiliation

The connection or association between individuals or organizations based on shared interests or goals.

Socialized Power

A form of power that is utilized for the benefit of a group or society as a whole, rather than for individual gain.