Which of the Following Ratios Are of More Concern for the Shareholders

question 2

Multiple Choice

Which of the following ratios are of more concern for the shareholders?

• A) Liquidity and profitability
• B) Liquidity and leverage
• C) Profitability and activity
• D) Profitability and leverage

---

Definitions:

MAD

Mean Absolute Deviation, a measure used in statistics to quantify the average absolute dispersion or deviation from the mean or average.

Materials Management

The function responsible for planning, sourcing, moving, and storing materials required to produce goods and services.

Physical Supply

The actual, tangible products and raw materials available in the market or held by a company.