Which of the Following Is the LEAST Likely Explanation for a Firm's

question 59

Multiple Choice

Which of the following is the LEAST likely explanation for a firm's high ROE?

• A) The firm is growing.
• B) The firm is able to find investment opportunities that are very profitable.
• C) The firm has very efficient use of its assets.
• D) The firm enjoys high sales margins.

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Definitions:

Pattern Designers

Professionals who create templates for parts of garments or other items, ensuring they fit together perfectly to produce the intended design.

Fixed Cost

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Color Dyes

Chemical substances used to impart color to various materials, including textiles, hair, and paper.

Variable Cost

Expenses that vary directly with the level of production or sales, such as raw materials and labor costs.