fintech corporation, a large multinational firm, has various business units operating in diverse industries. it has been observed that managerial employment risk is at its lowest when the firm maintains relatively high levels of diversification. investors in the company face lower risk when the firm adopts a strategy of... related linked diversification. related constrained diversification. single business strategies. higher levels of firm diversification.

fintech corporation, a large multinational firm, has various business units operating in diverse industries. it has been observed that managerial employment risk is at its lowest when the firm maintains relatively high levels of diversification. investors in the company face lower risk when the firm adopts a strategy of... related linked diversification. related constrained diversification. single business strategies. higher levels of firm diversification.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 2MCQ: Which of the following is not a reason for decentralizing? a. Training and motivating managers b....

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1. The DuPont equation Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company’s financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a company’s ROE may have changed for better or worse and identify particular company strengths and weaknesses. The DuPont Equation A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a company’s ROE. According to the equation, which of the following factors directly affect a company’s ROE? Check all that apply. Efficiency in use of total assets Market-to-book-value ratio Operational efficiency Most investors and analysts in the financial community pay particular attention to a company’s ROE. The ROE can be calculated simply by…
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