A Firm Earning a Profit Can Increase Its Return on Investment

question 125

Multiple Choice

A firm earning a profit can increase its return on investment by: (CMA adapted)

• A) increasing sales revenue and operating expenses by the same dollar amount.
• B) decreasing sales revenues and operating expenses by the same percentage.
• C) increasing investment and operating expenses by the same dollar amount.
• D) increasing sales revenues and operating expenses by the same percentage.

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Definitions:

Human Imagination

The capability of the human mind to visualize, create, and innovate.

Attribute

A quality, characteristic, or feature of an individual, object, or concept that can be identified or used to describe it.

Paradigm

A unique collection of ideas or cognitive frameworks, encompassing theories, methodologies for research, assumptions, and criteria for determining valid contributions to a discipline.

Discipline

A field of study or branch of knowledge, as well as the practice of training to improve strength, skills, or behavior through rules and punishments.