Holding All Other Factors Constant, If a Firm Increases Its

question 71

Multiple Choice

Holding all other factors constant, if a firm increases its current assets relative to total assets,

• A)it increases return and reduces risk.
• B)it increases return and increases risk.
• C)it reduces return and reduces risk.
• D)it reduces return and increases risk.
• E)none of above are correct

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Definitions:

SWOT Analysis

SWOT Analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Planning Phase

The initial stage of a project or business strategy, where goals are set and tasks are outlined to achieve those goals.

Market-Product Grids

A strategic planning tool used to visualize and analyze relationships between different markets and products, facilitating decisions on where to focus marketing and product development efforts.

Positioning Studies

Research activities aimed at analyzing how a brand or product is perceived in the market relative to competitors, and identifying a strategy to occupy a distinctive place in the minds of consumers.