The Rate of Return on Total Assets Will Be Greater

question 123

True/False

The rate of return on total assets will be greater than the rate of return on ordinary shareholders' equity if the company has been successful in trading on the equity at a gain.

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Definitions:

Fatty Acids

Long-chain hydrocarbons that end with a carboxylic acid group, a major component of lipids in biological systems.

Carbons

The chemical element with atomic number 6, fundamental to life, and the basis of organic chemistry.

Micelle

An aggregate of surfactant molecules dispersed in a liquid colloid, forming a molecular assembly that can solubilize hydrophobic molecules in its hydrophobic core.

Hydrophobic

Characteristic of molecules or substances that do not readily mix with water.