Whether by Implementing a Strategy of Differentiation or One of Cost

question 19

Multiple Choice

Whether by implementing a strategy of differentiation or one of cost advantage, the common objective of a company is

• A) an ROA above 8%
• B) positive earnings per share
• C) maximum return on equity
• D) maximum leverage

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Definitions:

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset accounts.

Personal Equipment

Tangible items owned by an individual for personal use, not for business or commercial purposes.

Cash

Currency and other liquid instruments such as checks and bank deposits that are readily available for use in transactions and other immediate needs.

Normal Credit Balance

The expected balance type for certain accounts in the general ledger, such as liabilities, equity, and revenue accounts.