Which of the Following Statements Is CORRECT

question 68

Multiple Choice

Which of the following statements is CORRECT?

• A) An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.
• B) The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio.
• C) If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE.
• D) An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio.
• E) An increase in the DSO, other things held constant, could be expected to increase the ROE.

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Definitions:

Purpose Statement

A declaration that outlines the reasons for an entity's existence, goals, and the value it aims to provide.

Organizational Focus

The central concentration or specialty of an organization, often determining the scope of its operations and strategies.

Kickoff Meetings

Kickoff meetings are initial meetings that mark the beginning of a project or phase, where goals, expectations, roles, and guidelines are discussed among team members and stakeholders.

Project Office

A physical or virtual location where project management activities and administrative support for a project are centralized.