Question

1. Return on equity is a measure of performance from management's perspective.

a) True

b) False

2. When a company operates in different geographic locations it is considered to have different operating segments.

a) True

b) False

3. Return on equity is a measure of performance from management's perspective.

a) True

b) False

4. The pre-emptive right is the right to

a) share proportionately in any new sale of shares.

b) share in the management of the company.

c) share in the profits and losses of the company.

d) share in any dividends paid by the company.

Answer 1

1. TRUE

Return on equity is a measure of performance from management's perspective. It shows how effectively management is using its assets or equity funds.

2. FALSE

When a country operates in different geographic locations, it is considered to have different geographic segments.

3. TRUE

Return on equity is a measure of performance from management's perspective. It shows how effectively management is using its assets or equity funds.

4. Option (a) is correct

Pre emptive right is the right to share proportionately in the new sale of shares.