All Else Being Equal, Which of the Following Items Would

question 53

Multiple Choice

All else being equal, which of the following items would increase a company's return on investment (ROI) ?

• A) A decrease in net income.
• B) An increase in fixed costs.
• C) A decrease in average operating assets.
• D) A decrease in sales volume.

---

Definitions:

Contract Rate

The agreed-upon rate specified in a contract for performing services or supplying goods.

Bond Indenture

A contract that spells out the provisions of the contract between the corporation and bondholder.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or the amount a lender charges for the borrowing of money.

Contract Rate

The agreed-upon interest rate specified in a loan or bond agreement.