Which of the Following Statements Is CORRECT

question 84

Multiple Choice

Which of the following statements is CORRECT?

• A) Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt increases from 40% of total assets to 60%.Under these conditions, the ROE will decrease.
• B) Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%.Under these conditions, the ROE will increase.
• C) Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%.Without additional information, we cannot tell what will happen to the ROE.
• D) The modified DuPont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE.
• E) Other things held constant, an increase in the debt ratio will result in an increase in the profit margin on sales.

Differentiate short-term from long-term therapy approaches and recognize their objectives.

Appreciate the historical context and evolution of terminology in psychotherapy, such as the preference for the term “client” over “patient”.

Understand the roles and powers of federal agencies in enforcing antitrust laws.

Recognize anticompetitive behaviors and their legal consequences under various antitrust laws.

---

Definitions:

Inventory

The total quantity of goods and materials a business holds for the purpose of resale or production, tracked for management and operational efficiency.

Cash Conversion Cycle

A measurement gauging how long a company needs to turn its investments in inventory and other assets into cash flows through sales.

DOI

An acronym for Digital Object Identifier, a unique alphanumeric string used to identify content and provide a permanent link to its location on the Internet.

Self-presentation

The process by which individuals communicate their identity to others, often aiming to create a favorable impression.