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Agrefeld, Inc

question 157

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Agrefeld, Inc. has a return on assets of 12% and a return on common equity of 15%. What causes the difference in these two returns?


Definitions:

Biological Theories

Concepts in science and sociology that attribute human behavior and societal differences to inherent physiological and genetic factors.

Environmental Factors

External elements including climate, land, water, vegetation, and pollution that impact living organisms and ecosystems.

Biological Determinism

The belief that human behavior and social phenomena are determined by biological factors, often minimizing the role of environmental and social influences.

Positivism

A theoretical approach that considers all understanding to be based on science.

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