Which Ratio Measures How Effectively a Firm Uses Its Assets

question 41

Multiple Choice

Which ratio measures how effectively a firm uses its assets to generate revenue?

• A) profitability ratio
• B) asset management ratio
• C) liquidity ratio
• D) leverage ratio

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Definitions:

Proletariat

The class of workers in capitalist societies who do not own the means of production and whose main source of income is the sale of their labor power.

Class

A category or grouping of people in society often defined by economic, social, or professional status.

Ethnomethodology

A sociological perspective that examines the methods people use to understand and produce the social order in everyday situations.

Critical Theory

A philosophical approach to culture, literature, and society that seeks to confront the social, historical, and ideological forces underlying traditional thought.