Which of the Following Firms Would Be Expected to Have

question 54

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

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Definitions:

Factual Information

Data or details that are true and can be verified through evidence or observation, as opposed to opinions or interpretations.

Intuitive Thinking

A cognitive process that involves making decisions or solving problems based on feelings and perceptions without explicit reasoning.

Cognitive

Relating to the mental processes of perception, memory, judgment, and reasoning, as opposed to emotional or physical processes.

Uncertain Environment

A scenario where the future conditions or outcomes are unpredictable, impacting decision-making and strategy in organizations.