Assume BDS Acquired Its Main Supplier, ABC

question 88

Multiple Choice

Assume BDS acquired its main supplier, ABC.As a result of the acquisition, BDS finds that its profit margin increased but its ROA remained constant.A decrease in which one of these ratios is most apt to be the reason why the ROA did not increase with the increase in the profit margin?

• A)leverage ratio
• B)market-to-book ratio
• C)asset turnover
• D)debt burden

---

Definitions:

Beliefs

Deeply held convictions or understandings that an individual considers to be true, shaping their thoughts and actions.

Opinions

Personal beliefs or judgments that are not based on certainty or knowledge but on what one thinks or feels about a particular subject.

Knowledge

Information, awareness, or understanding gained through experience, education, or research.

Information

Data that has been processed, organized, or structured in a way that adds to its meaning or context, making it useful for decision-making.