Using the DuPont System of Analysis and Holding Other Factors

question 131

Multiple Choice

Using the DuPont system of analysis and holding other factors constant, decrease in total asset turnover will result in ________ in the return on equity.

• A) an increase
• B) a decrease
• C) no change
• D) an undetermined change

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Definitions:

Fat Cells

Also known as adipocytes, these cells store energy in the form of fat and play an important role in energy balance.

Drive Theory

A theory in psychology that posits that behavior is motivated by drives that arise from biological needs that demand satisfaction.

Homeostasis

The ability of a living organism to maintain internal stability by adjusting its physiological processes.

Drive-Reduction

A theory of motivation that posits that behavior is driven by the need to reduce internal states of tension caused by unmet biological needs.