If a firm has positive net income, a drop in a venture's asset intensity ratio will increase its ROE.

Name: If a firm has positive net income, a drop in a venture's asset intensity ratio will increase its ROE.
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A drop in the asset intensity ratio means the firm is using fewer assets to generate sales, which can lead to higher asset turnover. With positive net income, this can increase the return on equity (ROE) as the firm becomes more efficient in using its assets to generate profits.

If a Firm Has Positive Net Income, a Drop in a Venture's