Which Ratio Is Based on the Principle That a High-Risk

question 19

Multiple Choice

Which ratio is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns?

• A) risk-return
• B) price earnings
• C) quick return
• D) current

---

Definitions:

Regression Analysis

A statistical method used for estimating the relationships among variables, commonly used for prediction and forecasting.

Pay Structuring

The method by which organizations standardize the compensation provided to employees, including base pay, bonuses, and increments.

Compensable Factors

Elements of a job that are used to determine its value and appropriate compensation, such as skill level, effort, responsibility, and working conditions.

Two-Tier Wage System

A salary structure where workers performing the same job or function are paid differently based on certain criteria, typically involving new hires being paid less than more senior employees.