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A Firm's Efficient Use of Its Assets in Running the Business

question 300

Multiple Choice

A firm's efficient use of its assets in running the business is key to maintaining sufficient cash flow. Ratios that accountants utilize to measure the efficient use of assets are called ________ ratios.


Definitions:

Economic Rent

Earnings in excess of the minimum required to keep a factor of production in its current use, often derived from unique advantages.

Demand For Land

The economic desire or need for land for various purposes such as agriculture, residential, commercial, or industrial developments.

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.

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