Which Statement Best Describes the Author's View of Efficiency

question 8

Multiple Choice

Which statement best describes the author's view of efficiency?

• A)Efficiency reflects a particular point of view.
• B)Efficiency is an empirically measurable fact.
• C)Efficiency represents the highest ratio of costs to benefits.
• D)Efficiency is a universal good.

---

Definitions:

Working Capital

The measure of a company's operational efficiency and short-term financial health, calculated as current assets minus current liabilities.

Financial Statements

Reports that provide information about a company's financial condition including income, expenses, and net worth.

Current Ratio

A financial ratio that measures a company's ability to pay short-term obligations using its short-term assets.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or in the normal operating cycle of the business, whichever is longer.