Which of the Following Firms Would Be Expected to Have

question 93

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high profitability?

• A) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• B) a low-end retailer that has a low 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:

Afferent Nerves

Nerve fibers that carry sensory signals from the body's periphery towards the central nervous system.

Receptors

Specialized cells or proteins in organisms that detect and respond to chemicals, light, and other stimuli.

Effectors

Organs or cells that act in response to a stimulus, often referring to muscles or glands that carry out the body's responses to stimuli.

Afferent Neurons

Nerves that carry messages inward toward the central nervous system.