Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)The return on assets ratio indicates whether the company can pay its current debt when it becomes due.
• B)The causes for an increase or decrease in the return on assets ratio can be examined by calculating its two components: return on sales and asset turnover.
• C)If a company successfully applies leverage,its return on assets ratio will be greater than its return on common stockholders' equity ratio.
• D)If a company's return on assets ratio increases,the increase can be the result of decreased liquidity.

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Definitions:

North Korea

A country in East Asia, officially known as the Democratic People's Republic of Korea, characterized by its totalitarian regime and significant political and social isolation from most of the world.

Transnational Corporations

Large companies that operate in multiple countries, exercising an influence on global economics and politics beyond national borders.

National Governments

The primary governing bodies of sovereign nations, responsible for creating and enforcing laws, policies, and administrative functions.

Foreign Labour

workers from one country who are employed in another country, often to fulfill labor shortages or take on jobs not filled by the local workforce.