Which One of the Following Will Not Increase Return on Investment

question 123

Multiple Choice

Which one of the following will not increase return on investment?

• A) Variable costs are increased
• B) An increase in sales
• C) Average operating assets are decreased
• D) Variable costs are decreased

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Definitions:

Authorized Capital Stock

As stated in its charter, the number of shares of capital stock (common and preferred) that a corporation can sell.

Issued Capital Stock

Stock that the corporation issues for assets or services contributed by the stockholders.

Mutual Agency

A principle in partnership where each partner is fully authorized to act on behalf of the partnership, making decisions that bind all parties.