Backward Linkages Arise When

question 29

Multiple Choice

Backward linkages arise when

• A) the production of one good decreases demand in industries that supply components for that good.
• B) the production of one good increases the profits in industries that supply components for that good.
• C) the production of goods for export increases demand in industries that supply components for that good.
• D) the production of goods that were previously imported increases demand in consumers for that good.
• E) the production of one good increases demand in industries that supply components for that good.

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Definitions:

Current Ratios

A financial metric used to measure a company's ability to pay its short-term obligations with its current assets.

Days To Sell

An estimate of the average number of days it takes for a company to sell its inventory.

Inventory

A complete list of items such as property, goods in stock, or the contents of a building.

Times Interest Earned Ratio

The times interest earned ratio is a financial metric used to measure a company's ability to meet its debt obligations by comparing its income before interest and tax (EBIT) to its interest expenses.