Companies HD and LD Are Both Profitable, and They Have

question 62

Multiple Choice

Companies HD and LD are both profitable, and they have the same total assets (TA) , Sales (S) , return on assets (ROA) , and profit margin (PM) . However, Company HD has the higher debt ratio. Which of the following statements is CORRECT?

• A) Company HD has a lower total assets turnover than Company LD.
• B) Company HD has a lower equity multiplier than Company LD.
• C) Company HD has a higher fixed assets turnover than Company LD.
• D) Company HD has a higher ROE than Company LD.
• E) Company HD has a lower operating income (EBIT) than Company LD.

---

Definitions:

Deindividuate

Refers to the loss of self-awareness and individual accountability in group situations, leading to behavior that is uninhibited or deviant from normative conduct.

Dehumanise

To dehumanise means to deprive individuals or groups of their human qualities, dignity, or individuality, often as a mechanism to justify discrimination or violence.

Psychiatric Facility

A healthcare institution specializing in the diagnosis, treatment, and care of patients with mental health conditions.

Stripy Outfits

Clothing patterns featuring lines of varying colors, widths, and orientations, often used for fashion or identifying group affiliations.