Which of the Following Best Describes What a Profitability Ratio

question 70

Multiple Choice

Which of the following best describes what a profitability ratio is?

• A)It shows the relative amount of funds in the business supplied by shareholders.
• B)It indicates a company's ability to pay short-term debts.
• C)It indicates management's ability to generate a financial return on sales or investment.
• D)It shows a company's profit margins for the last six months.
• E)It indicates a company's future profits from its current customer base.

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Definitions:

Probability

A measure of the likelihood or chance that a particular event will occur.

Overbooks

The practice of selling more tickets or reservations than available capacity, commonly used by airlines and hotels to compensate for no-shows.

Probability

The calculation of an event's chance of happening, depicted on a scale from 0 to 1.

Seat Belts

Seat belts are safety devices designed to secure the occupants of a vehicle against harmful movement that may result during a collision or a sudden stop.