The Performance Ratio That Measures the Efficiency of the Organization

question 26

Multiple Choice

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) ________ ratio.

• A)activity
• B)leverage
• C)profit
• D)liquidity

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Definitions:

Risk-Free Return

The theoretical return attributed to an investment with zero risk, often associated with the return on government bonds.

Monarch Stock Fund

A hypothetical or specific mutual fund focusing on stocks, possibly structured around companies with substantial market influence or leadership.

Characteristic Line

In finance, it's a line generated in a scatterplot by regressing the returns of a security against the returns of the market, used to assess the security's sensitivity to market movements.

T-Bills

Short-term debt securities issued by the U.S. Treasury to finance government spending, seen as low-risk investments.