Which of the Following Ratios Would Be Considered Favorable If

question 14

Multiple Choice

Which of the following ratios would be considered favorable if it was low?

• A) Total revenues to population.
• B) Debt service to total revenues.
• C) Capital outlay from operating funds to operating expenditures.
• D) Cash and short-term investments to current liabilities.

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Definitions:

Financial Viability

The ability of an entity or project to manage its expenses and generate sufficient revenue to continue operating effectively.

Residential Neighborhoods

Areas primarily containing housing where people live, often differentiated by types of housing, socioeconomic status, and urban planning.

Externalities

Negative or positive impacts on third parties stemming from business operations, which are not accounted for in the pricing of products or services.

Market Equilibrium

A state in a market where the quantity supplied equals the quantity demanded, leading to a stable market price and no excess supply or demand.