Which of the Following Statements Is Correct

question 101

Multiple Choice

Which of the following statements is correct?

• A)If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE.
• B)An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio.
• C)An increase in the DSO, other things held constant, could be expected to increase the ROE.
• D)An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.

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Definitions:

Translators

Individuals or software that convert text or speech from one language to another, enabling communication across different languages.

Common Property Resources

Resources like land, air, and water that are not owned privately but are available for use by an entire community or society.

Single Ownership

A business model where a single individual owns all of the firm's stock and is solely responsible for its decisions.

Cross International Borders

The movement of goods, services, capital, and people across the political boundaries of different countries.