Which of the Following Statements Is NOT TRUE Regarding the Experiences

question 37

Multiple Choice

Which of the following statements is NOT TRUE regarding the experiences countries go through as they undertake market transitions from socialism to a more market based economy?

• A)Drastic measures have to be taken to turn around formerly inefficient companies.
• B)Managers' thinking have to be changed so that they can understand management functions.
• C)Financial systems have to be left unregulated to accurately reflect market prices.
• D)More workers have to be hired as companies find that they are understaffed.

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Definitions:

Cash Basis Accounting

A financial recording approach where earnings and outlays are only acknowledged upon the receipt or payment of cash.

Accrual Basis Accounting

A financial recording system in which earnings and expenditures are logged when they happen, not necessarily when the payment is made or received.

Return on Assets

A financial ratio that measures how effectively a company is using its assets to generate profit, typically expressed as a percentage.

Debt Ratio

Debt ratio is a financial ratio that measures the extent of a company’s leverage, calculated by dividing total liabilities by total assets.