A Firm with a Substandard Return on Total Assets Can

question 93

Multiple Choice

A firm with a substandard 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:

External Motivation

Motivation to engage in an activity due to outside factors such as rewards or pressure from others, rather than for personal satisfaction or enjoyment.

Internal Motivation

The drive to act or engage in an activity for its inherent satisfaction or fulfillment rather than for some separable consequence or external reward.

Learning Disability

A neurological disorder that affects a person's ability to understand, remember, and communicate information, often impacting academic performance.

Characteristics

Distinctive traits or qualities that define and distinguish individuals, objects, or phenomena.