If Your Goal Is Determine How Effectively a Firm Is

question 81

Multiple Choice

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine?

• A)profit margin, current ratio, fixed charge coverage ratio
• B)quick ratio, debt ratio, time interest earned
• C)inventory turnover ratio, days sales outstanding, fixed asset turnover ratio
• D)total assets turnover ratio, price earnings ratio, return on total assets
• E)time interest earned, profit margin, fixed asset turnover ratio

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Definitions:

Total-Cost Curve

A graphical depiction showing the total cost of producing different levels of output, illustrating the relationship between production volume and total costs.

Production Possibilities Frontier

A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology.

Agreeableness

The trait of being good-natured, cooperative, and trusting.

Big Five

A popular model in personality psychology referring to the five broad traits used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.