Which One of the Following Will Decrease If a Firm

question 46

Multiple Choice

Which one of the following will decrease if a firm can decrease its operating costs, all else constant?

• A) Return on equity
• B) Return on assets
• C) Profit margin
• D) Total asset turnover
• E) Price-earnings ratio

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Definitions:

Organizational Performance

The measure of how efficiently and effectively a company or organization reaches its goals and objectives.

Ethical Leadership

A style of leadership that involves leading in a manner that respects the rights and dignity of others, ensuring fairness, justice, and equity in decision making.

Employee Trust

The confidence employees have in the reliability, integrity, and fairness of their employer and its leaders.

Financial Performance

It denotes the measure of an organization's profitability, revenue, expenses, and overall financial health.