Since the ROA Measures the Firm's Effective Utilization of Assets

question 77

True/False

Since the ROA measures the firm's effective utilization of assets (without considering how these assets are financed), two firms with the same EBIT must have the same ROA.

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Definitions:

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Real Property

Land and anything permanently attached to it, like buildings, along with the rights associated with the ownership of land.

Tangible Property

Physical assets that can be seen, touched, and measured, such as land, buildings, and equipment.

Life Tenant

An individual who has the right to use or occupy a property during their lifetime but does not own the property.