Which of the Following Would Result in Lower Return on Assets

question 20

Multiple Choice

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

• A)A reduction in earnings before interest and taxes
• B)An increase in asset turnover
• C)A reduction in total assets
• D)An increase in profit margin

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Definitions:

Acquire Patents

Process of obtaining legal rights to inventions or designs, ensuring exclusive use to the holder.

Cost-Reduction

Strategies or actions taken to lower expenses and improve efficiency in production or operations.

Long-Run Profitability

A measure of a company's ability to maintain earnings at a certain level over the length of time necessary to cover all costs, including variable and fixed costs.

Imitate

The act of copying or mimicking the actions, appearance, or characteristics of someone or something.