Which of the Following Firms Would Be Expected to Have

question 23

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 its assets per year
• E)a mining firm that is mostly engaged in exploration for new deposits

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Definitions:

Souvenirs

Items purchased or obtained as a reminder of a particular place, event, or experience.

Demand Independence

The condition where the demand for one product does not directly affect the demand for another, allowing for independent forecasting.

Postponement

A supply chain strategy that delays the final assembly or customization of a product until the latest possible time to reduce inventory costs and increase flexibility.

Product Variety

The range of different products or variations of a product that a company offers to its customers to meet diverse preferences and needs.