What Is Primarily Responsible for the Potential Distortion Among the ROA

question 91

Multiple Choice

What is primarily responsible for the potential distortion among the ROA of different firms when net income is used in the numerator of ROA?

• A) Firms have different dividend payout ratios.
• B) Some firms use fully depreciated assets.
• C) Financial leverage varies among firms.
• D) Unprofitable firms will not have any tax liability.

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Definitions:

Team Empowerment

The process of giving team members autonomy, authority, and control over decision-making and resources, enhancing their efficacy and motivation.

Commitment

A state or quality of being dedicated to a cause, activity, or goal.

Cross-Functional Teams

Groups composed of members from different departments within an organization, working together towards a common goal.

Specialty Areas

Refers to specific fields or domains within a profession or discipline, characterized by a focus on particular skills or knowledge.