Which of the Following Describes the Purchasing of a Good

question 20

Multiple Choice

Which of the following describes the purchasing of a good or asset in one market for immediate resale in another market in order to profit from a price discrepancy?

• A)risk adverse.
• B)arbitrage.
• C)hedging.
• D)uncertainty.
• E)none of the above.

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Definitions:

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using shareholders’ funds to generate profit.

Debt Ratio

A financial metric that assesses a firm's level of indebtedness by dividing its total liabilities by its total assets.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by stockholders' equity.