If a Company's ROA Is High, Then an Investor Can

question 52

Multiple Choice

If a company's ROA is high, then an investor can assume that the company

• A) is in danger of defaulting on its loans.
• B) pays a high dividend.
• C) is profitable.
• D) has more equity than debt in its capital structure.

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Definitions:

Genotype

The genetic makeup of an organism, comprising all the alleles and genes within an individual's DNA.

Genetic Material

Genetic material constitutes the DNA (deoxyribonucleic acid) or RNA (ribonucleic acid) in living organisms that contains the biological instructions which determine an organism's physical characteristics, development, and functioning.

Double Helix

The structure of DNA, characterized by two twisted strands forming a shape similar to a spiral staircase.

Stage Theorists

Researchers or psychologists who propose that development occurs in distinct, sequential phases or stages.