If a Firm Decreases Its Operating Costs, All Else Constant

question 51

Multiple Choice

If a firm decreases its operating costs, all else constant, then:

• A)the profit margin increases while the equity multiplier decreases.
• B)the return on assets increases while the return on equity decreases.
• C)the total asset turnover rate decreases while the profit margin increases.
• D)both the profit margin and the equity multiplier increase.
• E)both the return on assets and the return on equity increase.

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Definitions:

Focus Control

The adjustment or regulation of the clarity and sharpness of an image in photography or optics.

Sterilization

The destruction of all microorganisms, including bacterial spores, by specific means.

Organisms

Living entities that can act or function independently, ranging from single-celled bacteria to complex multicellular forms like animals and humans.

Autoclave

A device that uses pressurized steam to sterilize instruments and equipment.