Which of the following would NOT adversely affect return on equity?
A) an increase in company income tax
B) transfers from retained profits to general reserve
C) reduced margins in an aggressive market place
D) a decrease in operating profit.

Question

Quizplus · Accepted Answer

Transfers from retained profits to general reserve would not adversely affect return on equity as it is a part of the company's strategy for future growth and stability. A, C, and D would all have a negative impact on return on equity.

Which of the Following Would NOT Adversely Affect Return on Equity