A Manager That Uses Ratios Such as Cash and Deposits

question 70

Multiple Choice

A manager that uses ratios such as cash and deposits due from banks to total assets and U.S.government securities to total assets to measure a firm's liquidity position is using:

• A)the sources and uses of funds approach.
• B)the structured funds approach.
• C)the liquidity indicator approach.
• D)signals from the market place.
• E)None of the options is correct.

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Definitions:

Modified Rebuy

A purchasing situation in which a buyer reevaluates options for repurchasing a product or service due to changing needs or conditions.

Straight Rebuy

A purchasing situation in which a business buys the same goods or services without seeking new information or considering other suppliers.

New Buy

A purchasing situation characterized by a customer buying a product or service for the first time, often involving extensive decision-making and research.

Reverse Auctions

A buying process where sellers bid to provide goods or services to a buyer, with prices typically decreasing as the auction progresses.