What Will Happen to Return on Investment (ROI)if Current Assets

question 73

Multiple Choice

What will happen to return on investment (ROI) if current assets decrease while everything else remains the same?

• A)ROI will decrease.
• B)ROI will increase.
• C)ROI will not be affected.
• D)We cannot determine the direction of the effect from the information provided.

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Definitions:

Reasonable Options

Choices or alternatives that are sensible and likely to bring about a desired outcome based on rational judgment.

Human Decision-Making

The cognitive process resulting in the selection of a belief or a course of action among several possible alternatives.

Promising Alternative

An option that shows potential to be effective or beneficial in comparison to others.

Decision-Critical Attributes

The essential qualities or factors that significantly influence the outcome of a decision-making process.