Assume BGL Enterprises Increases Its Operating Efficiency by Lowering Its

question 64

Multiple Choice

Assume BGL Enterprises increases its operating efficiency by lowering its costs while holding its sales constant.As a result,given all else constant,the:

• A)return on equity will increase.
• B)return on assets will decrease.
• C)profit margin will decline.
• D)total debt ratio will decrease.
• E)price-earnings ratio will increase.

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Definitions:

Stimulus

A detectable change in the internal or external environment that can elicit or evoke a physiological response from an organism.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and impacts on the consumer and society.

Cognitive Dissonance

A psychological phenomenon where there is discomfort from holding conflicting beliefs, values, or attitudes, often leading to behavior change.

Ritual Consumption

The patterns of behaviors and customs involved in the purchasing and use of products or services in a way that holds symbolic meaning.