Return on Equity Will Increase If the _________________

question 209

Multiple Choice

Return on equity will increase if the _________________.

• A) profit margin decreases
• B) return on assets increases
• C) debt-equity ratio decreases
• D) accounts receivable turnover increases
• E) total asset turnover decreases

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Definitions:

Industry

The sector of an economy involved in the production of goods and services.

Inferiority

A feeling of lower standing in relation to others, which can affect an individual's self-esteem and social interactions.

Competence

Refers to having the necessary ability, knowledge, or skill to perform a task successfully.

Self-Worth

An individual's subjective valuation of themselves, encompassing self-esteem, self-respect, and a sense of personal value.