Which of the Following Is a Ratio That Measures the Firm's

question 21

Multiple Choice

Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management?

• A) A liquidity ratio
• B) An activity ratio
• C) Return on assets
• D) A current ratio
• E) Profit margin on sales

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Definitions:

Equilibrium Price

The market price at which the quantity of goods demanded is equal to the quantity of goods supplied.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Exert Pressure

Applying force or influence to achieve a specific outcome or change.

Old Price

Refers to the price level of a good or service in the past, before any adjustments like inflation, discounts, or changes in market conditions.