The "Invisible Hand" Refers to

question 85

Multiple Choice

The "invisible hand" refers to

• A)the government.
• B)the free market.
• C)central planners.
• D)large businesses.

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable over a period.

Inventory Turnover

A ratio that shows how often a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock levels.

Capital Structure

The combination of a business's long-term loans, particular short-term borrowings, common stock, and preferred stock, employed to fund its general activities and expansion.

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.