Which Ratio Assesses How Efficiently a Firm Uses Its Fixed

question 76

Multiple Choice

Which ratio assesses how efficiently a firm uses its fixed assets?

• A)Capital intensity ratio
• B)Current ratio
• C)Average collection period
• D)Fixed asset turnover

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Definitions:

Income Redistribution

The process of reallocating income through taxation, welfare policies, or other government programs to reduce income inequality.

Utilitarian Justice

A theory in ethics and economics that suggests actions should be judged as morally right if they result in the greatest good for the greatest number of people.

Distributional Justice

The philosophical and theoretical discussions and principles concerning the fair allocation of goods among members of society.

Income Redistribution

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and subsidies to achieve economic equity.