Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)The return on assets ratio indicates whether the company can pay its current debt when it becomes due.
• B)The causes for an increase or decrease in the return on assets ratio can be examined by calculating its two components: return on sales and asset turnover.
• C)If a company successfully applies leverage,its return on assets ratio will be greater than its return on common stockholders' equity ratio.
• D)If a company's return on assets ratio increases,the increase can be the result of decreased liquidity.

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Definitions:

Ideal Point

The position at which a particular market segment’s ideal product would lie on a perceptual map.

Point of Parity

Elements of a product or brand that are similar to those of competitors, indicating a level of equality in the consumer's eyes.

Perceptual Map

A Perceptual Map is a visual tool used in marketing to depict consumers' perceptions of brands or products relative to competitors.

VALS Framework

A tool used in psychographic segmentation that classifies consumers into eight distinct types based on their responses to a questionnaire, focusing on values, attitudes, and lifestyle.