Which of the Following Is Not One of the Ways

question 38

Multiple Choice

Which of the following is not one of the ways record companies, composers, and recording artists make their money?

• A) The direct sale of CDs and digital downloads at retail stores
• B) Charging fees to radio stations that play their music
• C) The illegal sharing of songs via computer files
• D) Selling albums and songs on sites like iTunes and Amazon
• E) All of the options are correct.

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Definitions:

Acid-Test Ratio

A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.

Liquidity Ratios

Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.

Equity Multiplier

A financial ratio that measures a company's total assets financed by shareholders' equity, indicating the level of leverage used by the company.