If You Can Follow a Definite Procedure to Make a Business

question 3

Multiple Choice

If you can follow a definite procedure to make a business decision,you are making a(n) ________ decision.

• A)ad-hoc
• B)procedural
• C)unstructured
• D)semi-structured
• E)structured

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Cash Ratio

A liquidity metric that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) measures a company's current share price relative to its per-share earnings, used by investors to evaluate the valuation and potential for future earnings growth of a stock.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, serving as an indicator of the company’s profitability.