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:

THC

Tetrahydrocannabinol, the principal psychoactive constituent of cannabis, responsible for its mind-altering effects.

Cognitive Effects

Impacts on mental processes such as thinking, memory, and problem-solving.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders such as bacteria, viruses, and other pathogens.

Toxic By-products

Harmful substances produced during manufacturing processes or chemical reactions.