A Firm Has a Lower Inventory Turnover, a Longer ACP

question 69

Multiple Choice

A firm has a lower inventory turnover, a longer ACP, and a lower fixed-asset turnover than the industry averages. You should not be surprised to find that this firm has:
I. Lower ATO than the industry average
II. Lower ROA than the industry average
III. Lower ROE than the industry average

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

---

Definitions:

Real Property

Land and anything permanently attached to it, such as buildings, often considered immovable.

Adverse Possession

A legal principle that allows a person to claim ownership of land after occupying it for a certain period, under certain conditions.

Driveway

A private road leading from a public way to a building or dwelling on a piece of land, meant to facilitate vehicle access.

Deed

A legal document that represents the ownership of real property or real estate and is used to transfer the ownership from one party to another.