When the Return on Total Assets Is Greater Than the Return

question 49

True/False

When the return on total assets is greater than the return on common stockholders' equity, the management of the company has effectively used leverage.

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Definitions:

Trademarks

Legal symbols, names, or phrases used to represent and differentiate goods or services of one entity from those of others.

Closely Held Corporation

A corporation owned by a limited group of people. Its stock is not traded publicly.

Ownership

refers to the state or fact of possessing something, which typically bestows upon the owner the right to use, control, and dispose of the property.

Stock

Stock represents shares in the ownership of a company, entitling holders to a portion of the company's profits and assets.