Which of the Following Is True

question 23

Multiple Choice

Which of the following is true?

• A)Corporate strategy is shaped by functional strategies.
• B)Corporate mission is shaped by corporate strategy.
• C)Functional strategies are shaped by corporate strategy.
• D)External conditions are shaped by corporate mission.
• E)Corporate mission is shaped by functional strategies.

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Definitions:

Debt-to-Total-Assets Ratio

The debt-to-total-assets ratio is a financial metric that measures a company's leverage by comparing total debts to total assets.

Capital Structure

The manner in which a firm’s assets are financed; that is, the right side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm such as debt, preferred stock, and common equity.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Debt-to-Total-Assets Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its total assets, showing what portion of the assets is financed by debt.