In Constructing a Utility Curve

question 96

Multiple Choice

In constructing a utility curve

• A)a comparison is made of the different amounts of money at different times.
• B)the certainty of a certain amount is compared with the willingness to gamble that amount on a larger amount.
• C)one takes the risk out of gambling.
• D)inflation plays a critical part in the evaluation.

---

Definitions:

Common Stockholders' Equity

The portion of equity ownership in a corporation held by common stock investors, reflecting their claim on the company's assets.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Profit Margin

A financial ratio that measures the amount of net income earned with each dollar of sales by comparing profit to revenue.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations based on its current earnings.