Return Ratios Are Measures of the Relationship Between the

question 104

Multiple Choice

Return ratios are measures of the relationship between the

• A)income earned and the investment made in the company by the various groups.
• B)revenue earned and the total equity of a company.
• C)total equity of a company and its cash flows for the period.
• D)profitability and liquidity aspects of a company.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Bargaining Power

The capacity of one party to influence the terms and conditions of an agreement in its favor during negotiations with another party.

Price Concessions

Adjustments made to the original price of a good or service in response to negotiating tactics or market demands.

Buyer

An individual or entity that acquires goods or services in exchange for money or other forms of payment.