Which of the Following Statements Is TRUE

question 3

Multiple Choice

Which of the following statements is TRUE?

• A) Decision making only really occurs in the planning function.
• B) Decision making cannot be considered an integral part of any managerial function.
• C) Decision making is especially important in organizing and controlling.
• D) Decision making is not only an integral part of all managerial functions, it is the very core of planning.

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Definitions:

Debt/assets Ratio

A financial ratio that compares the total amount of debt a company has to its total assets, indicating how much of the assets are financed by debt.

Current Ratio

Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Net Income

The total profit of a company after deducting all expenses, taxes, and costs from its total revenue.

Profitability Ratios

Financial metrics that assess a firm's ability to generate profit relative to its revenue, assets, equity, or other financial metrics over a specified period.