Company A and Company B have the same gross profit margin and the same total asset turnover,
but company A has a higher return on equity. This may result from
A) Company A has a lower debt ratio.
B) Company B has more common stock.
C) Company A has lower selling and administrative expenses, resulting in a higher net profit
margin.
D) Company A has lower cost of goods sold, resulting in a higher net profit margin.
C
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The purpose of marketing channels is to create ________
A) time utility B) place utility C) form utility D) all of the above
What is the copay clause in an insurance policy?
A) a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date B) a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy C) a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years D) a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer
Which of the following financial statements includes information about a firm's assets, equity, and liabilities at a specific point in time?
A. Income statement B. Cash flow statement C. Balance sheet D. Statement of retained earnings E. Statement of changes in long-term financing
A question of ethics
Russell's weight varied between 280 and 305 pounds while she was enrolled in a nursing program at Salve Regina College in Newport, Rhode Island. Her weight was never an issue until her sophomore year, at which time she began to be the target of cruel remarks by school officials. In her junior year, she received a failing grade in a clinical nursing course—not on the basis of her performance but simply because she was obese. The normal consequence of failing a clinical nursing course was expulsion from the college, but Russell was offered a deal: If she signed a "contract" in which she promised to attend Weight Watchers regularly and to submit proof of her attendance, and if she managed to lose two pounds a week steadily, she would remain in good standing. Russell attended Weight Watchers regularly but failed to lose the required two pounds a week, and the following year the college requested that she withdraw from the nursing program. Russell sued the college for damages for breach of contract. The jury found that Russell's relationship to the college was essentially a contractual one in which she was required to abide by disciplinary rules, pay tuition, and maintain a good academic record (which she did—except for the course that she failed because of her obesity) and the college was required to provide her with an education until graduation. The jury also found that Russell had "substantially performed" her side of the bargain and that the college's actions prevented Russell from rendering complete performance and constituted a breach.