Which One of the Following Is NOT an Advantage of Using

question 108

Multiple Choice

Which one of the following is NOT an advantage of using return on equity (ROE) as a goal?

• A) ROE is highly correlated with shareholder wealth maximization.
• B) ROE and the DuPont analysis allow management to break down the performance and identify areas of strengths and weaknesses.
• C) ROE does not consider risk.
• D) All of the above are advantages of using ROE as a goal.

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Definitions:

Fishing Quotas

Regulatory limits on the amount or type of fish that can be caught within a certain period to prevent overfishing and sustain fish populations.

Federal Government

The national government of a federated state, which holds the highest level of authority in the country, responsible for national defense, foreign policy, and other matters of national importance.

Park Managers

Individuals responsible for overseeing the operations, maintenance, and administrative functions of parks to ensure they meet the needs of visitors and conserve natural resources.

Visitor Desires

The interests and preferences of individuals visiting a particular place or event, which can significantly influence their behaviors and choices.