Which of the Following Firms Would Be Expected to Have

question 62

Multiple Choice

Which of the following firms would be expected to have a high ROE?

• A) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• B) a high-end fashion retailer that has a very high mark-up on all items it sells
• C) a brokerage firm that has high levels of leverage
• D) a grocery store chain that has very high turnover, selling many multiples of its assets per year

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Definitions:

Auditory Area

The region of the brain responsible for processing sound information.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives such as those for food and sex.

Amygdala

A part of the brain's limbic system involved in emotion regulation, emotional learning, and the formation of memories associated with emotional events.

Convolutions

The folds or ridges on the brain's surface, increasing the brain's surface area and its ability to process information.