Using the DuPont System of Analysis and Holding Other Factors

question 69

Multiple Choice

Using the DuPont system of analysis and holding other factors constant, an increase in the net profit margin will result in ________ in the return on equity.

• A) an increase
• B) a decrease
• C) no change
• D) an undetermined change

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Definitions:

Beauty Effect

A social phenomenon where individuals perceived as attractive are often given preferential treatment or are judged more favorably.

Rating Error

Mistakes or biases that can occur during the evaluation of employee performance, affecting the fairness and accuracy of appraisals.

Administrative Reason

A justification or cause related to management or procedural issues within an organization.

Merit Pay

A salary increase awarded to employees based on their job performance, used as a tool for motivation and encouragement of high performance.