A Manager Can Improve Return on Assets by Implementing Which

question 17

Multiple Choice

A manager can improve return on assets by implementing which of the following actions?
I. Increasing sales
II. Decreasing costs
III. Decreasing assets

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

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Pre-Merger Market

The financial and economic conditions affecting companies and their stock prices before they undergo a merger.

External Growth

Expansion of a business through acquiring or merging with other companies, as opposed to internal growth through increasing sales, product lines, or efficiencies.

Diversification

In finance, selecting a portfolio of different (diverse) investments to limit the overall risk borne by the investor.