Efficiency MIS Metrics Focus on the Extent to Which a Firm

question 205

Multiple Choice

Efficiency MIS metrics focus on the extent to which a firm is using its resources in an optimal way, while effectiveness MIS metrics focus on _________.

• A)understanding how successful a firm is at achieving its goals and objectives
• B)analyzing if a firm is doing the right things
• C)setting the right goals and ensuring they are accomplished
• D)All of these are correct.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year, indicating the amount a company owes its creditors and others.

Acid Test

A rigorous and conclusive test to prove the effectiveness or value of something, often related to financial solvency.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, represented by the proportion of its total debt to its total assets.

Assets Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.