Which of the Following Firms Would Be Expected to Have

question 62

Multiple Choice

Which of the following firms would be expected to have a high ROE?

• A) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• B) a high-end fashion retailer that has a very high mark-up on all items it sells
• C) a brokerage firm that has high levels of leverage
• D) a grocery store chain that has very high turnover, selling many multiples of its assets per year

---

Definitions:

Lie Detector

A device or procedure designed to detect lies by measuring physiological responses believed to accompany deception, such as heart rate, blood pressure, and galvanic skin response.

Acquiescent Response Set

A tendency for respondents to agree with statements as presented to them, regardless of their content, in the context of questionnaire data.

Test Items

are individual questions or tasks designed to measure specific knowledge, skills, or abilities in assessments or exams.

Unidimensionality

Refers to the measure in which a variable or construct is theorized to represent a single underlying dimension or trait.