Which of the Following Statements Is Most Correct

question 72

Multiple Choice

Which of the following statements is most correct?

• A) An increase in a firm's debt ratio, with no changes in its sales and operating costs, could be expected to lower its profit margin on sales.
• B) An increase in the DSO, other things held constant, would generally lead to an increase in the total asset turnover ratio.
• C) An increase in the DSO, other things held constant, would generally lead to an increase in the ROE.
• D) In a competitive economy, where all firms earn similar returns on equity, one would expect to find lower profit margins for airlines, which require a lot of fixed assets relative to sales, than for fresh fish markets.
• E) It is more important to adjust the Debt/Assets ratio than the inventory turnover ratio to account for seasonal fluctuations.

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Definitions:

Hospitals Improvement

Initiatives or actions taken to enhance the quality of care, efficiency, and patient outcomes in hospital settings.

Biomedical Research

The study of the biological and health sciences to understand diseases, develop treatments, and improve medical diagnosis and therapy.

National Institutes of Health

An important part of the U.S. Department of Health and Human Services and the largest source of biomedical and public health research funding in the world.

Tissue and Organ Bank

Facilities or repositories that collect, store, and distribute human tissues and organs for transplantation and research.