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

question 76

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.

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Definitions:

Canalization

A genetic term referring to the ability of an organism to produce the same phenotype regardless of variability in its environment or genotype.

Environmentally Induced

Conditions or changes in an organism that are caused by external environmental factors rather than genetic influences.

Failure To Thrive Syndrome

A medical condition, often seen in infants, characterized by a failure to gain weight and grow as expected for age and sex.

Nutrition

The process by which organisms take in and utilize food materials, essential for growth, repair, and maintenance of health.