Which of the Following Statements About NAICS Codes Is TRUE

question 26

Multiple Choice

Which of the following statements about NAICS codes is TRUE?

• A)The letters in NAICS stand for National Assortments in Commercial Stores.
• B)Retailers with the same NAICS codes are likely to compete against each other.
• C)A retailer's principal competitor is seldom,if ever,in the same NAICS category.
• D)The NAICS code categorizes businesses according to an 8-digit classification system.
• E)The classifications for retail firms are based upon the location of the store fronts.

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Definitions:

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.

Liquidity Ratios

Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.

Equity Multiplier

A financial ratio that measures a company's total assets financed by shareholders' equity, indicating the level of leverage used by the company.

Inventory Turnover Ratio

A measure of how frequently a company sells and replaces its stock of goods in a given period.