Return on Equity

question 9

Multiple Choice

Return on equity:

• A)will be the same as return on investment.
• B)relates dividends and turnover.
• C)relates dividends and stockholders' equity.
• D)relates net income and stockholders' equity.

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Definitions:

Perfect Competition

A theoretical market structure characterized by many buyers and sellers, homogenous products, and no barriers to entry or exit, leading to optimal distribution of resources.

Lose Customers

The consequence faced by a business when it fails to meet the needs or expectations of its consumers, leading to a decrease in its customer base.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, leading to some degree of market power.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.