Return on Assets Can Be Disaggregated into Three Components

question 53

Multiple Choice

Return on assets can be disaggregated into three components.Which of the following is not one of the components?

• A) Assets Turnover ratio
• B) Profit Margin ratio
• C) Debt to Equity ratio
• D) Capital Structure Leverage ratio

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Definitions:

General Equilibrium Analysis

A method in economics that attempts to understand how supply and demand interact across multiple markets simultaneously, and how they reach a state of balance.

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.