Match the Financial Objective with Its Correct Definition

question 63

Multiple Choice

Match the financial objective with its correct definition.

• A) stability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio
• B) profitability - how productively a firm utilizes its assets
• C) liquidity - a company's ability to make a profit
• D) efficiency - a company's ability to meet its short-term obligations
• E) profitability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio

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Definitions:

Fatty Acids

Long-chain hydrocarbons that contain a carboxylic acid group at one end. They are an important component of lipids in living organisms.

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others, used for energy storage and as structural components of cell membranes.

Organic Acids

Organic acids are a group of acidic compounds that contain carbon and are found in many plants and animals, essential in various biochemical processes.

Inorganic Ions

Charged atoms or molecules that do not contain carbon-hydrogen bonds, often playing crucial roles in physiological processes.