Assume BDS Acquired Its Main Supplier,ABC

question 68

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

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Definitions:

Immediate Reinforcement

The immediate reward or punishment following a behavior, which influences the likelihood of that behavior being repeated.

Successful Occasion

Represents a situation or event where the intended or desired outcomes are achieved effectively.

Short Delay

A brief period of waiting or postponement before an action or process is initiated or continued.

Habituated

A process by which an individual becomes accustomed to a stimulus or environment through repeated exposure, leading to a decrease in response.