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 profitability?

• A)a grocery store chain that has very high turnover, selling many multiples of their assets per year
• B)a brokerage firm that has high levels of leverage
• C)a low-end retailer that has a low mark-up on all items it sells
• D)a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals

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Definitions:

Psychoanalytic Theory

A psychological theory and therapeutic method developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, and that environment and experiences determine behavior, neglecting internal mental states.

Psychoanalytic Theory

A theory of psychology proposed by Freud that aims to explain human behavior through unconscious motives, conflicts, and past experiences.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology.