If Management Wishes to Measure a Business's Ability to Pay

question 8

Multiple Choice

If management wishes to measure a business's ability to pay upcoming debts,they could refer to measures for:

• A)leverage.
• B)liquidity.
• C)debt management.
• D)profitability.

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Definitions:

Secondary Sector

The part of the economy that is concerned with transforming raw materials into finished or semi-finished products, often referred to as the industrial sector.

Tribal Society

A form of society structured around family ties, with social organization typically based on clans or tribes.

Division of Labor

The separation of a work process into a number of tasks, with each task performed by a separate person or group, leading to increased efficiency.

Services

Economic activities that produce intangible goods or benefits, such as healthcare, education, banking, and entertainment, as opposed to tangible physical products.