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:

Free Alongside

A shipping term indicating that the seller is responsible for delivering the goods next to a designated vessel, after which the buyer takes over the transportation costs.

Simple Delivery Contract

An agreement where the transfer of goods or services is completed upon the delivery of said goods or services, without requiring formal documentation for transfer of title.

Buyer and Seller

Refers to the two primary parties in a transaction where goods, services, or assets are exchanged between a purchaser and a vendor.

Agreement

A mutual understanding or arrangement between two or more parties, typically formalized into a contract, regarding their respective rights and responsibilities.