Sandy Is Responsible for Monitoring Compliance with Regulations in Her

question 212

Multiple Choice

Sandy is responsible for monitoring compliance with regulations in her company. She needs to know that the important areas of government regulation are

• A) protecting competition and upholding environmental regulations.
• B) protecting social goals, upholding environmental regulations, and protecting shareholder rights.
• C) protecting competition, protecting consumers, and upholding environmental regulations.
• D) protecting competition, protecting consumers, protecting social goals, and protecting the environment.
• E) protecting shareholder rights, and following business law.

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Definitions:

Du Pont Identity

A formula that breaks down Return on Equity (ROE) into three component parts: profit margin, asset turnover, and financial leverage, to analyze a company’s financial performance.

Profit Margin

A fiscal indicator calculating the proportion of income left once total costs are subtracted from revenues.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by stockholder's equity.

Long-Term Debt Ratio

A financial ratio that shows the proportion of a company's long-term debt relative to its total capital.