Markets Can Work to Prevent Harm Only Through Information Supplied

question 63

Multiple Choice

Markets can work to prevent harm only through information supplied by the existence of market failures. This is better known as the:

• A)biomimicry effect.
• B)backcasting problem.
• C)first-generation problem.
• D)primary market effect.

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Definitions:

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its debt obligations with its operating cash flow.

Accounts Payable

The total sum a business must pay to its suppliers or creditors for products and services obtained on credit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.