If the Total Asset Turnover Decreases, Then the Return on Equity

question 112

Multiple Choice

If the total asset turnover decreases, then the return on equity will

• A) decrease.
• B) increase.
• C) not change.
• D) change, but in an indeterminate way.

Identify the elements of persuasive requests in business communication.

Differentiate between direct and indirect strategies in business messages.

Understand the role of emotion and logic in persuasive business messages.

Realize the significance of audience analysis in formulating business messages.

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Definitions:

Fixed Assets/Sales Ratio

A financial metric that indicates how efficiently a company is using its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits, often used to make informed business decisions.

Financial Planning Models

Quantitative models used to project financial components such as revenue, expenses, and cash flow over a period, aiding in business strategy and decision-making.

Firm Value

Refers to the total value of a company as determined by the market, which includes the value of the company's equity and debt.