Which Ratio Would You Use to Examine a Company's Ability

question 1

Multiple Choice

Which ratio would you use to examine a company's ability to pay its debts in the short-term?

• A)Earnings per share
• B)Acid-test ratio
• C)Debt to assets ratio
• D)Return on equity

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Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, protect domestic industries, or generate revenue.

Privatization

The process of transferring ownership or operation of a business, enterprise, agency, or public service from the public sector (government) to private individuals or organizations.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, resulting in the interconnectedness of global economies, cultures, and populations.

International Policy

Policies designed to handle issues that cross national borders and require cooperation or negotiation between countries.