Which of the Following Ratios Is Difficult for Creditors of a Firm

question 22

Multiple Choice

Which of the following ratios is difficult for creditors of a firm to analyze because the data is usually not available in published financial statements?

• A) quick ratio
• B) average age of inventory
• C) operating leverage
• D) average payment period

---

Definitions:

Mom-And-Pop Operations

Small, family-owned or independent businesses, often characterized by personal customer service and local operation.

Dimensions

Dimensions represent measurable extents of an object or system, such as length, width, height, or depth, in physical spaces, or could refer to aspects or elements in other contexts.

Timmons Model

A model of entrepreneurship that emphasizes the dynamic balance between opportunity, resources, and the entrepreneurial team in the successful creation of a venture.

Idiosyncratic Bundle

A unique combination of resources, capabilities, and technologies that a company possesses, distinguishing it from competitors.