Which of the Following Is True of a Firm That

question 98

Multiple Choice

Which of the following is true of a firm that has no debt in its capital structure?

• A) Its return on equity (ROE) will be greater than its return on asset (ROA).
• B) Its return on equity (ROE) will be lesser than its return on asset (ROA).
• C) Its return on equity (ROE) will be equal to its return on asset (ROA).
• D) None of the above.

---

Definitions:

Employee Needs

The physical, emotional, social, and psychological requirements of employees that need to be met for them to perform their jobs effectively and remain satisfied and motivated.

Four-drive Theory

A theory positing that human behavior is driven by four fundamental needs or drives: the drive to acquire, bond, learn, and defend.

Reactive

A response or behavior that occurs as a result of external stimuli, rather than initiating action proactively.

Proactive

An approach characterized by taking initiative and anticipatory actions to influence an outcome, rather than reacting to events after they occur.