If a Firm Decreases Its Operating Costs,all Else Constant,then

question 76

Multiple Choice

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

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

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Definitions:

Misleading Strategies

Marketing or business tactics intended to deceive or lead customers or competitors astray.

Competitive Advantage

Describes a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often due to unique resources, capabilities, or strategies.

Competitive Advantage

The unique attributes or circumstances that enable a company to outperform its competitors.

Advantages

Advantages refer to beneficial aspects or competitive edges that one person, group, product, or service has over comparable ones.