Ratios That Measure Solvency Include

question 195

Multiple Choice

Ratios that measure solvency include:

• A) Current ratio.
• B) Total asset turnover.
• C) Times interest earned.
• D) Pledged assets to secured liabilities.
• E) Both pledged assets to secured liabilities and times interest earned.

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Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Deming

Refers to W. Edwards Deming, an engineer, statistician, and management consultant known for his work in quality management and productivity improvement.

Autocratic Organizations

Organizations characterized by centralized decision-making, where control is exercised by a single leader, leading to quicker decision-making but potentially lower employee morale.

Deming Management

A comprehensive management approach proposed by W. Edwards Deming, focusing on quality improvement, increased productivity, reduced costs, and customer satisfaction through statistical methods.