Any increase in profit contribution that a strategy generates, without increasing capital invested,

A. increases the debt to equity ratio.
B. reduces shareholder value.
C. is an impossible task.
D. increases the risk associated with that strategy.
E. increases the firm's return on investment.


Answer: E

Business

You might also like to view...

Which of the following characteristics applies to process costing, but does not apply to job order costing?

A) The use of single Work in Process accounts B) The use of equivalent units C) Separate, identifiable jobs D) The use of predetermined overhead rates

Business

At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account

Indicate whether the statement is true or false

Business

Which of the following is not a reason why people join groups?

A) to consume fewer hours in decision making B) to fulfill social needs for affiliation C) to feel stronger and have fewer self-doubts D) to achieve something that cannot be individually achieved E) to have increased feelings of worth

Business

Cost-based pricing strategies result in a flat dollar amount or percentage being added to the cost of the product.

Answer the following statement true (T) or false (F)

Business