A Firm with a Low Return on Total Assets Can

question 86

Multiple Choice

A firm with a low return on total assets can improve its return on equity, all else remaining the same, by ________.

• A) increasing its debt ratio
• B) increasing its total asset turnover
• C) decreasing its debt ratio
• D) decreasing its total asset turnover

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Definitions:

Divided-Consciousness Theory

A hypothesis in psychology that suggests the mind can operate on more than one level of awareness simultaneously.

Dissociative Theory

Explains certain behaviors and experiences, such as amnesia or identity fragmentation, as a result from a disconnection between thoughts, identity, consciousness, and memory.

Central Nervous System

Comprises the brain and spinal cord, responsible for processing information and controlling bodily functions.

Sedative

A class of drugs that slows brain activity, inducing relaxation or sleep.