Which One of the Following Will Increase the Return on Equity

question 12

Multiple Choice

Which one of the following will increase the return on equity?

• A)increase in the corporate tax rate
• B)decrease in cost of goods sold
• C)issuance of debt to purchase equipment
• D)increase in variable costs per unit
• E)decrease in net sales

Understand the balance and conflict between team competencies and individualism/collectivism in organizational settings.

Understand the distinction between distributive and integrative negotiations and their implications.

Recognize the importance of intangible factors in negotiations.

Appreciate the essential role of preparation in negotiation success.

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Definitions:

Outstanding Stock

The number of shares of a corporation that have been issued and are currently owned by shareholders.

Net Income

The amount of profit remaining after all expenses, including taxes and interest, have been deducted from total revenues.

Valuation Allowance

An accounting technique used to offset or reduce the carrying value of certain tax assets if it's more likely than not that they will not be realized.

Unrealized Gain

The increase in value of an asset or investment that has not been sold or exchanged, thus not yet generating cash.