Ratios That Measure How Efficiently a Firm Uses Its Assets

question 78

Multiple Choice

Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios.

• A)profitability
• B)long-term solvency
• C)short-term solvency
• D)utilization
• E)market value

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Definitions:

Design Thinking

An iterative process in solving problems creatively and innovatively by understanding the human needs involved, re-framing the problem in human-centric ways, and adopting a hands-on approach in prototyping and testing.

Problem Solving

The process of identifying a problem, devising alternatives to solve it, and implementing a solution.

Business Intelligence

The use of data analysis tools and methodologies by organizations to make data-driven decisions.

Escalating Commitment

A behavior pattern in which an individual or group continues to follow a failing course of action based on the time, money, or resources already invested.