The Following Question Relates to PQR, Which Has the Following

question 9

Multiple Choice

The following question relates to PQR, which has the following ratios: return on assets, (ROA) 12 per cent; return on equity (ROE) 15 per cent; and current ratio (CR) of 1.8:1. A customer provides a deposit of $500 000 near year-end. The product will not be delivered until next year. This transaction will:

• A) increase ROA and ROE but decrease CR.
• B) increase ROA and ROE but have no effect on CR.
• C) decrease CR but have no effect on ROA or ROE.
• D) decrease ROA and CR but have no effect on ROE.

---

Definitions:

Active Form

A state or mode of operation in which engagement and direct participation are emphasized, often used to describe dynamic and participatory processes or structures.

Intellectual Stimulation

is the process of encouraging individuals to think critically, creatively, and to challenge existing assumptions and beliefs.

Full Range Leadership Model

A leadership theory that suggests leaders perform across a spectrum of behaviors, from passive to transformational, depending on the situation and the needs of the followers.

Creative And Innovative

The ability to generate new ideas, solutions, or approaches that are novel and useful in a particular context.