You Observe That a Firm's ROE Is Above the Industry

question 115

Multiple Choice

You observe that a firm's ROE is above the industry average,but both its profit margin and equity multiplier are below the industry average.Which of the following statements is CORRECT?

• A) Its total assets turnover must be above the industry average.
• B) Its return on assets must equal the industry average.
• C) Its TIE ratio must be below the industry average.
• D) Its total assets turnover must be below the industry average.
• E) Its total assets turnover must equal the industry average.

Differentiate between economic, legal, ethical, and discretionary responsibilities of organizations.

Evaluate the impact of corporate actions on stakeholders and the broader society.

Understand the concept of the virtuous circle in CSR and its implications for business and society.

Identify the criteria for evaluating socially responsible corporate behavior.

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Definitions:

Viral Marketing

A marketing strategy that relies on individuals to spread information about a product or service quickly, much like the spread of a virus.

Social Networking

Activities performed using social software tools (e.g., blogging) or social networking features (e.g., media sharing).

Social Computing

Refers to the use of computational devices to facilitate or enhance social interactions, involving the study and design of systems that support social behavior.

Customers

People or organizations that buy products or services from a company.