Which of the Following Generally Indicates a Positive Change

question 86

Multiple Choice

Which of the following generally indicates a positive change?

• A)Earnings per share decreases.
• B)The debt service coverage decreases.
• C)The acid-test ratio decreases.
• D)The number of days' sales in inventory decreases.

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Definitions:

Business Strategy

A plan of action designed by an organization to achieve its vision and goals, outlining the steps the business will take to compete effectively in its industry.

Learning Curve Effects

The observed improvement in performance or efficiency as individuals or organizations gain experience in a particular task or activity over time.

Economies of Scale

The economic benefits that businesses gain from operating at a larger scale, typically resulting in lower costs per unit of production as the scale increases.

Economies of Scope

Cost advantages that a business experiences when it increases the variety of products or services it offers, leveraging shared operations or resources.