If Your Goal Is Determine How Effectively a Firm Is

question 81

Multiple Choice

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine?

• A)profit margin, current ratio, fixed charge coverage ratio
• B)quick ratio, debt ratio, time interest earned
• C)inventory turnover ratio, days sales outstanding, fixed asset turnover ratio
• D)total assets turnover ratio, price earnings ratio, return on total assets
• E)time interest earned, profit margin, fixed asset turnover ratio

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Definitions:

Endorphins

Neurochemicals produced in the brain that act as natural painkillers and are associated with feelings of pleasure and euphoria.

Relieve Pain

The process or action of reducing, alleviating, or eliminating physical discomfort or suffering.

Parasympathetic Nervous System

A branch of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles in the gastrointestinal tract.

Somatic Nervous System

The part of the peripheral nervous system associated with voluntary control of body movements through the action of skeletal muscles.