Financial leverage affects the relationship

• A. with the top half of the income statement.
• B. with the firms current and fixed assets.
• C. between EBIT and net income.
• D. between sales revenue and operating income.

Firms offering a commodity product

• A. can have the same ROA as other firms in the industry.
• B. generally have lower returns on assets than firms offering differentiated products.
• C. have lower turnovers than other firms in the industry.
• D. have higher profit margins and lower turnovers than other competitors.