Which Ratio Would Be Considered an Activity Ratio

question 86

Multiple Choice

Which ratio would be considered an activity ratio?

• A) Debt-to-equity
• B) Net profit margin
• C) Average collection period
• D) Earnings per share
• E) Current ratio

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Definitions:

Business Proposition

A value statement explaining what benefits a company offers, how it solves customer problems, and why it is unique or better than competitors.

End-User

The final consumer of a product or service who uses it for its intended purpose.

ROI

Return on Investment, a financial metric used to evaluate the efficiency and profitability of an investment, calculated by dividing the net profit by the initial cost.

Marketing Plan

A strategic document outlining an organization's advertising and marketing efforts over a certain period of time.