What Is a Concentration Ratio

question 13

Multiple Choice

What is a concentration ratio?

• A)A ratio that measures the percentage of an industry's total output that is produce by the largest few firms.
• B)A ratio that measures the percentage of a firm's total output compared to its nearest rival.
• C)A ratio that measures the percentage of the economy's total output that a particular industry produces.
• D)A ratio that measures the size of each industry.

---

Definitions:

Liability Account

An account on a company's balance sheet that represents obligations or debts that the company is responsible for repaying.

Error

An unintentional mistake in financial records or transactions, which can result from miscalculations, misunderstandings, or misinterpretations of financial data.

Transactions

Financial activities that involve the exchange of assets, provision of services, or other business activities that affect a company's financial position.

Debit And Credit

In accounting, debit and credit are entries that record changes in value to accounts, where debits increase asset or expense accounts and decrease liability, equity, and revenue accounts.