In 2016, the Improvement in ABC's Return on Equity Occurred

question 117

Multiple Choice

In 2016, the improvement in ABC's return on equity occurred because

• A) ABC used more debt than in 1994.
• B) ABC lowered its expenses in 1995 and was, therefore, more profitable.
• C) ABC utilized its total assets more efficiently in 1995.
• D) None of the above explain the improvement in ABC's return on equity.

---

Definitions:

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts and memories are unconsciously pushed out of conscious awareness.

Displacement

A defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.

Regression

A defense mechanism where an individual reverts to an earlier stage of development in the face of unacceptable thoughts or impulses.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower number of unobserved variables called factors.