Investment, as Defined by Economists, Would Include the Purchase of a

question 159

Multiple Choice

Investment, as defined by economists, would include the purchase of a

• A)corporate bond.
• B)government bond.
• C)share of stock in SunCor.
• D)computer by an accounting firm.
• E)work of art you expect to increase in value.

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Definitions:

Liquidity Ratios

Financial metrics used to determine an entity's ability to pay off its short-term debts obligations.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Solvency Ratios

Financial ratios used to assess a company's ability to meet its long-term debts and obligations, indicating financial health and stability.

Liquidity Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.