What Is a Potential Problem with the Method of Authority

question 53

Multiple Choice

What is a potential problem with the method of authority?

• A) A person may claim to be an expert when he or she really is not.
• B) An "expert" answer may be only a personal, subjective opinion.
• C) An expert may be giving answers outside his or her area of expertise.
• D) The other three choices are all potential problems.

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Definitions:

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit.

Return On Equity

An indicator of financial performance determining how effectively a company uses shareholders' funds to generate income, reflecting efficiency in utilizing investor capital.