If a Firm Decreases Its Operating Costs,all Else Constant,then

question 74

Multiple Choice

If a firm decreases its operating costs,all else constant,then

• A)the profit margin increases while the cash coverage ratio decreases.
• B)the return on assets increases while the return on equity decreases.
• C)both the return on assets and the return on equity increase.
• D)both the profit margin and the equity multiplier increase.
• E)the total asset turnover rate decreases while the profit margin increases.

---

Definitions:

Hypertension Prevalence

The proportion of a population that has high blood pressure at a given time.

Racial Group

A group of people identified or classified together based on common genetic lineage, which often relates to physical characteristics and sometimes cultural, linguistic, or historical factors.

Hepatojugular Reflux

An increase in jugular vein pressure observable when pressure is applied to the liver, indicative of congestive heart failure or other cardiac issues.

Cardiomyopathy

A group of diseases that affect the heart muscle itself, potentially leading to heart failure and other complications.