Which of the Following Is Often Used to Measure a Company's

question 94

Multiple Choice

Which of the following is often used to measure a company's overall liquidity even though it is not really a financial ratio?

• A) earnings per share
• B) return on equity
• C) net profit margin
• D) net working capital

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Definitions:

Tax Burden

The total amount of tax that individuals, businesses, or other entities must pay to authorities, often expressed as a percentage of income or revenue.

Inelastic Demand

A situation where the demand for a good or service is not significantly changed by changes in price.

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly in response to changes in price, indicating flexibility in the production process.

Actual Incidence

The true distribution of a tax burden or the actual effect of a financial activity on different groups or entities.