A Point Lying Beyond the Utilities Possibilities Frontier Is

question 16

Multiple Choice

A point lying beyond the utilities possibilities frontier is:

• A) unattainable.
• B) efficient.
• C) inefficient.
• D) profitable.

---

Definitions:

New Bonds

Securities that have been recently issued, representing loans from investors to issuers such as corporations or governments with a commitment to pay interest and return principal at specified dates.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.

Average Collection Period

The average number of days it takes for a business to receive payment from its customers for invoices issued.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales by total assets.