_____________________ Are Used to Measure the Ability of a Firm

question 29

Multiple Choice

_____________________ are used to measure the ability of a firm to meet its short -term creditor's claims.

• A) Activity ratios
• B) Leverage ratios
• C) Liquidity ratios
• D) Market ratios
• E) Profitability ratios

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Definitions:

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Counterdependence

A psychological behavior where individuals reject help from others or avoid relying on others, often as a strategy to maintain a sense of independence or control.

Insecure Pattern

A recurring behavior or thought process stemming from feelings of insecurity, affecting relationships and decision-making.

Overdependence

The excessive reliance on someone or something, often to the point where it becomes unhealthy or problematic.