Government Failure

question 46

Multiple Choice

Government failure

• A)Occurs whenever the government intervenes in the market.
• B)Does not occur;only market failure occurs.
• C)Results when government intervention fails to improve market outcomes.

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from credit sales by comparing net credit sales with the average accounts receivable.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Acid-Test Ratio

is a financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Balance Sheet

An accounting document summarizing assets, liabilities, and owners' equity of a business on a specific date.