Profitability Ratios Indicate I. Whether the Firm Is Using Its Assets Productively;

question 25

Multiple Choice

Profitability ratios indicate
I. whether the firm is using its assets productively;
II. whether the firm is liquid;
III. whether the firm is profitable;
IV. how highly the firm is valued by investors

• A)I only
• B)II only
• C)III only
• D)III and IV only

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Definitions:

Representative

An individual or entity that acts on behalf of others or an entire group, in a specific capacity or role.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly using the mean, median, or mode.

X-bar Chart

A type of control chart used in statistical process control for monitoring the mean values of a sample over time to detect any significant process changes.

Acceptance Sampling

A statistical quality control method where a random sample of items from a lot is inspected to determine if the entire lot should be accepted or rejected.