Strategy

question 17

Multiple Choice

Strategy:

• A) Dates back to 500bc and the work of the strategist Sun Tzu of China.
• B) Applies concepts developed by the strategist von Clausewitz.
• C) Includes application of principles of military strategy to business competition.
• D) All of the above.

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Definitions:

Quick Ratio

The quick ratio, or acid-test ratio, measures a company's ability to pay its short-term liabilities with its most liquid assets.

Inventory

The merchandise or stock that a business has on hand to sell to customers.

Activity Ratios

Financial metrics that measure how efficiently a company utilizes its assets to generate sales or revenue.

Profitability

The ability of a business to earn a profit, determined by its revenue exceeding its costs and expenses over a specific period.