Return on Equity

question 68

Multiple Choice

Return on equity

• A) is the ratio of net profit after taxes to shareholders' equity.
• B) is a profitability ratio.
• C) is referred to by the acronym ROE.
• D) measures the rate of return on the book value of shareholders' total investment in the company.
• E) all of the above

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Definitions:

Noncorporate Businesses

Businesses that are not incorporated and typically include sole proprietorships, partnerships, and family-owned entities.

Imports

Goods or services brought into one country from another for the purpose of trade.

Exports

Goods and services produced in one country and sold to buyers in another, contributing to the exporting nation's GDP.

Net National Product

The total market value of all goods and services produced by the residents of a country, adjusted for depreciation.