Which of the Following Firms Would Be Expected to Have

question 39

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high operating efficiency?

• 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 their assets per year

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Definitions:

Price Change

A variation in the cost of goods or services over time, which can result from factors like supply and demand, inflation, or market dynamics.

Income

The amount of money received on a regular basis from work, property, investments, or government benefits.

Utility Function

A mathematical representation of how consumers derive satisfaction from goods and services, assigning numerical values to different bundles of goods.

Income

The amount of money or its equivalent received during a period of time in exchange for labor, services, or goods sold.