Financial Ratios Are Used to Compare a Firm's Performance Over

question 9

Multiple Choice

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

• A) overall business standards.
• B) projected goals.
• C) the performance of suppliers.
• D) non-financial ratios.
• E) the performance of competitors.

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Definitions:

Ultra Vires Acts

Acts performed beyond the powers or authority granted to a corporation or an individual by law.

S Corporation

A special designation that allows corporations to pass income directly to shareholders and avoid double taxation.

Partnerships

A business structure where two or more individuals manage and operate a business in accordance with the terms and goals set out in a partnership agreement.

Revised Model Business Corporation Act (RMBCA)

A set of laws proposed to standardize the regulation of corporations in the United States, offering a template for state legislatures.