Which of the Following Is the LEAST Likely Explanation for a Firm's

question 59

Multiple Choice

Which of the following is the LEAST likely explanation for a firm's high ROE?

• A) The firm is growing.
• B) The firm is able to find investment opportunities that are very profitable.
• C) The firm has very efficient use of its assets.
• D) The firm enjoys high sales margins.

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Definitions:

Higher Level

Refers to something that is of a greater complexity, advancement, or sophistication compared to something else.

Management

The practice of organizing, planning, leading, and controlling resources and people to achieve specific goals.

Horizontal Communication

The exchange of information between individuals or groups at the same level within an organization.

Lateral

Referring to interactions or relationships that occur at the same level of hierarchy within an organization, as opposed to vertical, top-down relations.