Which of the Following Would Indicate an Improvement in a Company's

question 19

Multiple Choice

Which of the following would indicate an improvement in a company's financial position, holding other things constant?

• A) The current and quick ratios both increase.
• B) The inventory and total assets turnover ratios both decline.
• C) The debt ratio increases.
• D) The profit margin declines.
• E) The EBITDA coverage ratio declines.

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Definitions:

Utilitarian Motives

The drive to act based on the expected utility or benefit derived from the action, often in terms of personal or communal gain.

Rational Decisions

Choices made based on logical reasoning, facts, and analysis rather than emotions or intuition.

Social Shopping

An e-commerce method where shopping experiences are shared and integrated with social networking features, allowing users to get recommendations and feedback from peers.

Influence Tactic

Techniques or strategies used to persuade or convince others to follow or support one's position or proposal.