Which One of the Following Statements Is NOT Correct

question 56

Multiple Choice

Which one of the following statements is NOT correct?

• A) The DuPont system is based on two equations that relate a firm's ROA and ROE.
• B) The DuPont system is a set of related ratios that links the balance sheet and the income statement.
• C) Both management and shareholders can use this tool to understand the factors that drive a firm's ROE.
• D) All of the above are correct.

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Definitions:

Budget Constraints

The limitations on a consumer's ability to purchase goods and services based on their income and the prices of goods and services.

Preferences

Describes individuals' choices and priorities among different bundles of goods and services.

Indifference Curves

A graph showing a series of lines that represent different bundles of goods between which a consumer is indifferent.

Diminishing Marginal

Refers to a principle where the marginal gain (such as utility or productivity) from an additional unit decreases as more units are consumed or produced.