Little Company is part of an industry value chain in which it has little competitive power. It has been forced to be responsive to both supplier and customer demands for timely delivery and cash payments on open accounts, and as a result experiences very low inventory and accounts receivable turnover. The company's low return on equity is probably most attributable to weak:

Question

Quizplus · Accepted Answer

The low inventory and accounts receivable turnover indicate that the company is not efficiently using its assets, leading to low asset intensity, which affects the return on equity.

Little Company Is Part of an Industry Value Chain in Which