All of the Following Are Economic Factors That Will Decrease

question 11

Multiple Choice

All of the following are economic factors that will decrease a firm's value-to-book ratio over time except:

• A) decreasing competition that drives the firm's ROCE down
• B) increasing systematic risk that increases the firm's equity cost of capital over time
• C) a loss of competitive advantage through changes in technology or other factors
• D) retaining earnings or issuing equity capital and deploying the capital in activities that generate ROCE levels that are lower than current levels

---

Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, expectations, or pressures.

Confederates

Individuals who are part of the experimental setup but pretend to be participants in a study, used to manipulate social situations as part of the research design.

Conformity

The act of matching attitudes, beliefs, and behaviors to what people perceive as normal to a specific society or social group.

Social Norms

The attitudes and standards of behavior expected of members of a particular group.