Which One of the Following Is Not a Basic Ratio

question 39

Multiple Choice

Which one of the following is not a basic ratio techniques used to conduct financial analysis?

• A) trend analysis
• B) sensitivity analysis
• C) cross-sectional analysis
• D) industry comparables analysis

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Definitions:

Substitution Effect

A modification in buying behavior triggered by a change in goods' comparative prices, prompting people to switch from one product to another.

Indifference Curve

A graph representing combinations of goods that provide the same level of satisfaction to a consumer.

Rational Consumer

An economic concept describing an individual who makes choices that maximize their utility or benefit, based on their preferences and constraints.

Utility Function

A mathematical representation used in economics to model the preference or satisfaction a consumer derives from consuming goods and services.