BGL Enterprises Increases Its Operating Efficiency Such That Costs Decrease

question 18

Multiple Choice

BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant. As a result,given all else constant,the:

• A) return on equity will increase.
• B) return on assets will decrease.
• C) profit margin will decline.
• D) equity multiplier will decrease.
• E) price-earnings ratio will increasE.

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Definitions:

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, developed by Hans Selye.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream to regulate various bodily functions.

Psychoneuroimmunologist

A scientist who studies the interaction between psychological processes, the nervous system, and the immune system.