Which of the Following Statements About Financial Ratios Is FALSE

question 110

Multiple Choice

Which of the following statements about financial ratios is FALSE?

• A)When calculating return on assets,preferred dividends are subtracted from net income.
• B)When calculating return on equity,preferred dividends are subtracted from net income.
• C)When calculating the price-earnings ratio,preferred dividends are subtracted from market price per share.
• D)When calculating earnings per share,preferred dividends are subtracted from net income.

Understand and analyze the concept of independent, mutually exclusive, and complementary events and their impact on probability calculations.

Learn to calculate the probability of compound events using the addition and multiplication rules.

Apply conditional probability concepts to revise the probabilities of events based on additional information.

Distinguish between different types of probabilities (posterior, joint, marginal) and know their applications.

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Definitions:

Subsidiaries

Companies that are owned or controlled by another company, often referred to as the parent company.

Upper-Management Positions

Roles within an organization that involve high-level decision-making responsibilities and oversight of the company or its major departments.

Strategic Alliance

A partnership between two or more companies to pursue a set of agreed upon goals while remaining independent organizations.

International Business Environment

Refers to the external factors, including economic, cultural, political, and legal aspects, that influence a company's operations when conducting business across borders.