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

---

Definitions:

Japanese Yen

The Japanese Yen is the official currency of Japan, widely recognized and used in international finance as a major reserve currency.

Canadian Security

A financial instrument issued in Canada, representing an investment in stocks, bonds, or other securities.

Norwegian Krone

The official currency of Norway, symbolized as NOK.

Inflation Rate

The rapidity with which the general pricing for services and products increases, diminishing the strength of currency.