Which One of the Following Financial Ratios Has the Highest

question 22

Multiple Choice

Which one of the following financial ratios has the highest weight in Altman's Z-score estimation?

• A) Working capital/Total assets
• B) Retained earnings/Total assets
• C) EBIT/Total assets
• D)Sales/Total assets

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Definitions:

Materialist Approach

A perspective that emphasizes the importance of physical conditions and economic factors in determining societal changes and individual behavior.

Critical Theory

A philosophical approach that seeks to understand and critique society and culture, advocating for societal changes.

Political Economy

An interdisciplinary field that examines the relationship between politics and economics, focusing on the ways in which political institutions, the political environment, and the economic system influence each other.

Karl Marx

A 19th-century philosopher, economist, and political theorist, whose ideas about class struggle and capitalism laid the foundation for Marxist theory.