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

question 36

Multiple Choice

In 2016, the improvement in ABC's return on equity occurred because [blank].

• A)ABC used more debt than in 1994
• B)ABC lowered its expenses in 1995 and was, therefore, more profitable
• C)ABC utilised its total assets more efficiently in 1995
• D)there is no explanation for ABC's return on equity

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Definitions:

German Democratic Republic

Also known as East Germany, a socialist state that existed from 1949 to 1990 in the eastern part of Germany, aligned with the Eastern Bloc during the Cold War.

East Germany

Officially the German Democratic Republic (GDR), a state that existed from 1949 to 1990 in the eastern portion of Germany, characterized by its socialist government and part of the Eastern Bloc during the Cold War.

Bundesrat

The federal council representing the federal states (Länder) of Germany at the national level, part of Germany's bicameral legislature.

Centralized Power

A political system where a central authority controls all or most of the government functions and decision-making processes.