Which of the Following Statements Is CORRECT

question 63

Multiple Choice

Which of the following statements is CORRECT?

• A)The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio.
• B)If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE.
• C)An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio.
• D)An increase in the DSO, other things held constant, could be expected to increase the ROE.
• E)An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.

Identify the corporate governance structure and roles of key officers.

Understand the concept of limited liability in the corporate form.

Recognize the continuous and perpetual life of a corporation.

Distinguish between publicly held and privately held corporations.

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Definitions:

Haloperidol

An antipsychotic medication used to treat schizophrenia, acute psychosis, and to control tics and vocal utterances of Tourette's syndrome.

Tardive Dyskinesia

A neurological disorder resulting in involuntary, repetitive body movements due to long-term antipsychotic medication use.

Idea of Reference

The false belief that casual incidents and external events have a particular and significant personal meaning, often seen in psychotic disorders.

Schizophrenia

A chronic brain disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.