Which One of the Following Ratios Would NOT Likely Be

question 29

Multiple Choice

Which one of the following ratios would NOT likely be used by a short-term creditor in evaluating whether to sell on credit to a company?

• A) acid-test ratio
• B) days sales in inventory
• C) asset turnover
• D) receivables turnover

---

Definitions:

Concern For Production

The focus on optimizing and maximizing the output and efficiency of production processes within an organization.

Concern For People

The degree of consideration and compassion an organization or individual displays towards the welfare and interests of others.

Blake Mouton Grid

A framework for understanding leadership style based on the manager’s concern for people and their concern for production, yielding five distinct management styles.

Consideration

A behavioral leadership style demonstrated by leaders who develop mutual trust and respect and actively build interpersonal relationships with their followers.