Elsie Wants to Calculate Her Return on Equity but Has

question 59

Multiple Choice

Elsie wants to calculate her return on equity but has forgotten the formula.You tell her that return on equity equals

• A)net income divided by owner's equity.
• B)owner's equity divided by net income.
• C)total assets divided by owner's equity.
• D)owner's equity divided by total assets.

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Definitions:

Substitution

The economic concept where consumers replace more expensive items with less costly alternatives, influencing demand and market dynamics.

Indifference Curve

A graphical representation in economics showing different bundles of goods between which a consumer is indifferent, implying no preference for one combination over the other.

Beyoncé

A highly influential American singer, songwriter, and actress known for her powerful vocals, stage performances, and role in promoting various socio-cultural causes.

Indifference Curve

An indifference curve represents combinations of goods among which a consumer is indifferent, showing the same level of satisfaction.