Other Things Equal, a Firm Can Increase Return on Investment

question 70

Multiple Choice

Other things equal, a firm can increase return on investment (ROI) by:

• A) decreasing investment.
• B) reducing expenses.
• C) increasing profit margins.
• D) increasing net sales.
• E) Any of these will increase ROI.

Differentiate between the processes of planning and controlling within an organization.

Identify the characteristics and objectives of managerial accounting.

Recognize the unique reporting needs and practices in managerial accounting versus financial accounting.

Understand the role of vertical and horizontal structures within an organization.

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Definitions:

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country possesses and can exploit for manufacturing and service provision.

Technology

The technical means for producing goods and services.

Heckscher-Ohlin Model

An economic theory that proposes countries will export products that utilize their abundant and cheap factors of production and import goods that require resources that are rare or expensive domestically.

Endowment

An endowment is the total of a person's or entity's assets, minus liabilities, considered in the context of their financial impact or wealth.