What Do These Classes of Ratios Measure

question 81

Essay

What do these classes of ratios measure?
(a) Liquidity ratios.
(b) Profitability ratios.
(c) Solvency ratios.

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Definitions:

State of Need

A psychological or physiological condition of lacking something requisite or desirable.

Drive Theory

A psychological theory that posits behavior is motivated by drives, internal states of tension that compel actions to satisfy needs.

Stimulus Motives

Psychological needs that prompt individuals to seek stimulation or information in their environment.

Innate Motives

Fundamental biological drives that are inherent in all humans, such as the needs for food, water, and shelter.