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:

Annual Grass

A type of grass that completes its entire life cycle from seed to death within one year.

Monocotyledones

Also known as monocots, a group of flowering plants characterized primarily by having one embryonic seed leaf.

Anthophyta

The division of plants that includes all flowering plants, characterized by the production of flowers and seed-containing fruits.

Homologous Structures

Anatomical features in different species that are similar due to evolutionary origin, indicating a common ancestor.