Which of the Following Will Increase Return on Equity

question 41

Multiple Choice

Which of the following will increase return on equity?

• A) An increase in sales with a proportionate increase in costs and expenses
• B) An increase in sales relative to the asset base
• C) A decrease in leverage
• D) Both A and C

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Definitions:

Discharged Debt

A debt that has been deemed paid or settled, releasing the debtor from further obligations.

Primary Effect

The direct and immediate results of an action or policy, as opposed to its secondary or indirect effects.

Overdue Debts

Money owed that has not been paid by the agreed-upon due date, often subject to additional fees or penalties.

Collect a Judgment

The process of legally enforcing a court's decision to recover a sum of money or other assets awarded to a party in a lawsuit.