What Category of Ratios Includes Return on Total Assets and Return

question 64

Multiple Choice

What category of ratios includes return on total assets and return on stockholders' equity?

• A) Leverage
• B) Activity
• C) Profitability
• D) Growth
• E) Liquidity

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Definitions:

Unlimited Liability

A legal obligation where business owners are personally responsible for all of the debts of the business.

Cooperatives

A type of organization owned and operated by a group of individuals for their mutual benefit.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.