Which Type of Financial Ratio Measures How Well the Managers

question 11

Multiple Choice

Which type of financial ratio measures how well the managers of an organization are creating value from the organization's assets?

• A) Leverage ratios
• B) Liquidity ratios
• C) Profit ratios
• D) Current ratios
• E) Activity ratios

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Definitions:

Propinquity

The tendency for people to form close relationships or feel a sense of attraction with others who are geographically close or frequently encountered.

Unbalance

A state of lack of equilibrium or stability, either physically, emotionally, or in terms of a system or situation.

Acquiescence

The act of agreeing or consenting without protest, often with little enthusiasm or conviction.

Homeostasis

The ability of a living organism to maintain stable internal conditions despite changes in external environments.