A Company Facing a Simple Environment Would___________

question 56

Multiple Choice

A company facing a simple environment would___________ .

• A) most likely be in the first stage of the environmental cycle
• B) exhibit proof of the punctuated equilibrium theory
• C) be unable to succeed due to lack of innovation
• D) be influenced by only factors in its specific environment
• E) have few external factors in the environment that affect it

---

Definitions:

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated funds, without resorting to external financing.

ROE

Return on Equity is an indicator of a company's profitability, demonstrating the amount of profit generated from the shareholders' investments.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively the company is using its assets to generate earnings.

Debt-Equity Ratio

The indicator displaying the equivalent contribution of equity and debt to a company's asset base financing.