By How Much Must a Firm Reduce Its Assets in Order

question 82

Multiple Choice

By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's profit margin is 5% on sales of $4 million?

• A) $240,000
• B) $333,333
• C) $400,000
• D) $516,167

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Definitions:

Mild Punishers

Interventions or consequences designed to decrease a behavior's occurrence, which are not severe or harsh.

Flooding

A behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most intense level, without any danger, to eliminate the fear response.

Extinction

The process through which a conditioned response decreases or disappears over time as it is no longer reinforced or paired with an unconditioned stimulus.

Avoidance Behavior

Actions taken to prevent or avoid the occurrence of an unpleasant stimulus or scenario.