If a Company Wants to Increase Its Return on Assets

question 86

Multiple Choice

If a company wants to increase its return on assets, it should not

• A) increase the profit margin.
• B) increase the asset turnover.
• C) decrease average total assets.
• D) increase average total assets.

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Definitions:

Specified Price

A determined cost set for a product or service, agreed upon by the seller and the buyer.

Rule 506

A provision of the Securities Act that allows companies to raise unlimited capital through private placements without extensive registration with the SEC.

Regulation D

A set of SEC regulations offering exemptions from the registration requirements for certain private placements of securities.

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.