When Would the Return on Equity (ROE) Definitely Equal the Return

question 24

Multiple Choice

When would the return on equity (ROE) definitely equal the return on assets (ROA) ?

• A) Whenever a firm has no long-term debt.
• B) Whenever a firm's debt-to-equity ratio is equal to one.
• C) Whenever a firm's long-term debt ratio is equal to zero.
• D) Whenever a firm's return on equity is equal to 100%.
• E) Whenever a firm's total debt ratio is equal to zero.

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Definitions:

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Scientific Management

Frederick Taylor’s system for using research to determine the optimum degree of specialization and standardization of work tasks.

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A compensation system where remuneration is based on the performance of a team rather than individual achievements.

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Structured initiatives designed to improve the performance of individuals or groups within an organization through targeted activities and assessments.