If a company's return on assets is higher than its return on shareholders' equity, then it has positive financial leverage.

True

False

Question $9$

$1$ pts

Companies with higher inventory turnover ratios tend to have lower inventory costs, including lower inventory storage and insurance costs, than companies with lower inventory turnover ratios.

$$ True

$$ False

Question $10$

$1$ pts

In general, managers prefer expenses as a percent of net sales to increase over time.

True

False