Examlex

Solved

The Computation of Return on Equity,or ROE,does Not Include Retained

question 36

True/False

The computation of return on equity,or ROE,does not include retained earnings as part of common equity because retained earnings includes all net income for the company since its inception and analysts are trying to calculate the return for just the current year.


Definitions:

Matrix Organization

A flexible organizational structure that combines elements of both functional and project-based divisions, allowing for more dynamic assignment of tasks and responsibilities.

Collaborative Organization

An entity that emphasizes teamwork, shared goals, and collective efforts among its members to achieve better outcomes.

Boundaryless

Refers to organizations or initiatives that operate without fixed limits or barriers in structure or operation, promoting flexibility and innovation.

Teamwork

The joint endeavor of a team to reach a shared objective or finish a task in the most optimal and proficient manner.

Related Questions