BGL Enterprises Increases Its Operating Efficiency Such That Costs Decrease

question 99

Multiple Choice

BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant.As a result, given all else constant, the:

• A)return on equity will increase.
• B)return on assets will decrease.
• C)profit margin will decline.
• D)equity multiplier will decrease.
• E)price-earnings ratio will increase.

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Definitions:

Compromise of 1850

A package of five bills passed in the United States in 1850 aimed at defusing political confrontations between slave and free states regarding territories acquired in the Mexican-American War.

Popular Sovereignty

The principle that the authority of a state and its government is created and sustained by the consent of its people, through their elected representatives.

Fugitive Slave Law

Legislation passed in the United States that required the capture and return of runaway slaves.

Sectional Controversy

Disputes and divisions in the United States, particularly between the North and South, over issues like slavery, tariffs, and states' rights, which ultimately led to the Civil War.