When the Rate of Return on Total Assets Ratio Is

question 111

True/False

When the rate of return on total assets ratio is greater than the rate of return on common stockholders' equity ratio, the management of the company has effectively used leverage.

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Definitions:

Reinforcing

A process in operant conditioning that increases the likelihood of a behavior by providing a consequence that is desirable.

Shaping

A method of teaching new behaviors by rewarding closer and closer approximations to the desired behavior.

Acquiring

The process of obtaining or gaining possession of something.

Cognitive-Behavioral Therapy

A psychotherapeutic approach that aims to solve problems concerning dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.