F Or a Given Level of Profitability as Measured by Profit

question 31

Multiple Choice

F
Or a given level of profitability as measured by profit margin, the firm's return on equity will

• A) increase as its debt-to-assets ratio decreases.
• B) decrease as its current ratio increases.
• C) increase as its debt-to assets ratio increases.
• D) decrease as its times-interest-earned ratio decreases.

---

Definitions:

White Rat

Typically refers to albino rats used as subjects in scientific research, especially in psychological experiments on conditioning and behavior.

Discriminative Stimulus

Any stimulus, such as a stop sign or a doorknob, that provides the organism with a cue for making a certain response in order to obtain reinforcement.

Watson's Little Albert

An experiment conducted by John B. Watson demonstrating classical conditioning by causing a young boy to develop a phobia of white rats.

UCS

An abbreviation commonly used in psychology that stands for Unconditioned Stimulus, which automatically triggers a response without any prior learning.