Which Ratio Would Best Give an Owner an Indication That

question 124

Multiple Choice

Which ratio would best give an owner an indication that the business is undercapitalized?

• A)Debt-to-net worth
• B)Net sales to total assets
• C)Average inventory turnover
• D)Quick

---

Definitions:

Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as major factors influencing personality and behavior.

Ego

A part of the psyche that mediates between the conscious, the unconscious, and reality, often involved in self-perception and personal identity.

Temptation

A desire to do something, especially something wrong or unwise.

Past Experiences

The accumulation of knowledge, skills, and memories that a person has gained from previous activities or events in their life.