The Following Question Relates to PQR, Which Has the Following

question 15

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 company declares and pays a final dividend. The effect of this transaction is to:

• A) decrease CR but not affect ROA and ROE.
• B) decrease CR but increase ROA and ROE.
• C) decrease CR, increase ROA and not affect ROE.
• D) have no effect.

---

Definitions:

Bounded Rationality

A concept in decision-making theory that suggests individuals make decisions based on the limited information available to them and within the constraints of their mental capacity.

Rule of Reciprocity

A social norm that suggests individuals respond to positive actions with other positive actions, fostering mutual benefit.

FMOT

The "First Moment of Truth," a marketing term referring to the first interaction between a customer and a product on the store shelf or online, crucial for making a good impression.

FMOT

First Moment of Truth; a marketing concept referring to the first time a consumer encounters a product and forms an impression.