Consider the Following Three Conditions: I

question 111

Multiple Choice

Consider the following three conditions: I. An increase in sales
II) An increase in operating assets
III) A reduction in expenses
Which of the above conditions provide a way in which a manager can improve return on investment?

• A)Only I
• B)Only I and II
• C)Only I and III
• D)Only II and III

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Definitions:

Additional Paid-In Capital

The amount of capital from shareholders that is more than the par value of the shares issued.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business, rather than distributed to shareholders as dividends.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.

Subsidiary Dissolved

The process of legally dissolving a subsidiary company, involving the winding up of its operations and distribution of its assets.