The Mere Fact That a Business Is Earning High Rates

question 82

Multiple Choice

The mere fact that a business is earning high rates of return on the business's asset indicates that:

• A)the business is worth more as a going concern than as a dead one.
• B)downsizing is likely to be an economically sound option for the business.
• C)it is time to start growing the business again.
• D)it might be wise to further limit the cash flows returned to investors.

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Definitions:

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