Suppose Novak Company Experienced a Reduction in Its ROE Over

question 27

Multiple Choice

Suppose Novak Company experienced a reduction in its ROE over the last year.This fall could be attributed to:

• A)an increase in net profit margin.
• B)a decrease in asset turnover.
• C)an increase in leverage.
• D)a decrease in Equity.

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Definitions:

Physiological Needs

Basic physical requirements essential for human survival, such as food, water, shelter, and sleep, considered the foundation of Maslow's hierarchy of needs.

Lower-order Needs

Basic human needs in Maslow’s hierarchy, such as physiological and safety needs, which must be satisfied before higher-order needs can be pursued.

Maslow's Hierarchy of Needs Theory

A psychological theory that categorizes human needs into a five-level pyramid, starting from basic physiological needs to self-actualization.

Higher-order Needs

Psychological needs that are associated with personal achievement, self-respect, and the recognition and respect of others.