Which of the following is the LEAST likely explanation for a firm's high ROE?
A) The firm is growing.
B) The firm is able to find investment opportunities that are very profitable.
C) The firm has very efficient use of its assets.
D) The firm enjoys high sales margins.
Answer: A
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Jeff Sanders, head of finance for Components, Inc has just interviewed Laura Dern, an employee from the finance department of InChip, Components' chief competitor. Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, "Look, I have no contract at InChip that obligates me in anyway. I
can begin immediately. Further, I have been able to obtain copies of our newest computer chip designs. You'll have them before InChip even begins production.". a. Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract. b. Jeff's hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct. c. Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's conduct to InChip. d. Jeff should not hire Laura and need not worry about Laura's conduct and its impact on InChip.
_________ is the routine, day-to-day administration of cash and near-cash resources, also known as liquid assets, by an individual or family
A) Depository management B) Resource management C) Cash management D) Financial management