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:

Moderate Drinking

The consumption of alcohol in a controlled manner that minimizes the risk of negative health and social consequences.

Overdose

An excessive and dangerous dose of a substance, typically a drug, leading to severe toxic reactions or death.

Poison

A substance that is harmful or lethal to organisms when introduced or absorbed, capable of causing illness or death.

Methadone

A synthetic opioid used medically both as a pain reliever and in the treatment of opioid addiction.