A Correlation Coefficient of

question 126

Multiple Choice

A correlation coefficient of .00 means there is _____ between the factors.

• A)a negative relationship
• B)a positive relationship
• C)a perfect relationship
• D)no relationship

Apply horizontal and vertical analyses to evaluate a company's financial condition and performance over time.

Recognize the importance of market prospect ratios in evaluating a company's future growth and shareholder value.

Understand financial analysis standards for benchmarking that include industry norms, historical data, and leading indicators.

Identify and understand key financial ratios used in business analysis.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability to its shareholders.

Suppliers

Suppliers are businesses or individuals that provide products or services to other businesses or consumers, typically as part of a supply chain.

Agency Problem

In corporations, managers are the agents of stockholders and are often able to take advantage of the relationship by diverting corporate resources to their own use. Excessive pay is the primary example. The general situation is described as the agency problem. Costs associated with controlling the agency problem are agency costs.

Ownership

The legal right or title to an asset or property, with the authority to use, sell, or lease it as the owner sees fit.