Match the Financial Objective with Its Correct Definition

question 63

Multiple Choice

Match the financial objective with its correct definition.

• A) stability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio
• B) profitability - how productively a firm utilizes its assets
• C) liquidity - a company's ability to make a profit
• D) efficiency - a company's ability to meet its short-term obligations
• E) profitability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio

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Definitions:

Higher Level of Unemployment

A state in which there is a larger than usual number of people without jobs, indicating increased job scarcity or economic downturns.

Business Cycle

The fluctuations in economic activity characterized by periods of economic expansion and contraction over time.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Unemployment and Inflation

Two key indicators in economics, where unemployment measures the percentage of the workforce that is jobless, and inflation indicates the rate at which the general level of prices for goods and services is rising.