Which of the Following Firms Would Be Expected to Have

question 62

Multiple Choice

Which of the following firms would be expected to have a high ROE?

• 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

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Definitions:

Factory System

A method of manufacturing using machinery and division of labor, characteristic of the Industrial Revolution.

Workingman's Parties

Political organizations formed in the 19th century advocating for the rights and interests of working-class individuals.

Strikes

Work stoppages initiated by employees as a form of protest, typically aimed at securing better wages, hours, or working conditions.

Market Revolution

A significant shift in the 19th century, where manual labor and trade transitioned towards a more market-oriented and industrial economy.