____ Ratios Indicate the Effectiveness of Specific Functional Areas Rather

question 66

Multiple Choice

____ ratios indicate the effectiveness of specific functional areas rather than that of the total organization.

• A) Coverage
• B) Debt
• C) Operating
• D) Return
• E) Activity

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Definitions:

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Diminishing Returns

A principle stating that as one factor of production increases while others remain fixed, there will eventually be a decrease in the incremental output gained.

Normal Rate

A standard or usual level of financial return on investment or interest on loans.

Supply

The total amount of a product or service that is available to consumers at a given price over a specific period.