The Effects of Changes That Can Cause a Product to Become

question 140

Multiple Choice

The effects of changes that can cause a product to become obsolete almost overnight would best be called ____ forces.

• A) competitive
• B) political
• C) technological
• D) sociocultural
• E) economic

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Definitions:

Current Ratio

This ratio assesses an entity's potential to cover its short-term dues using resources that are expected to be liquidated within a year.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a given period, used to assess efficiency in managing inventory stock.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Quick Ratio

A liquidity indicator that measures a company's ability to meet its short-term obligations with its most liquid assets.