Ratios That Measure How Efficiently a Firm Uses Its Assets

question 72

Multiple Choice

Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios.

• A)asset management
• B)long-term solvency
• C)short-term solvency
• D)profitability
• E)market value

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Definitions:

Inverse Supply

A concept in economics that describes the relationship between the price of a good and the quantity supplied by producers, typically showing that as price decreases, the quantity supplied decreases.

Tax

Compulsory contributions to state revenue, levied by the government on workers' income, business profits, or added to the cost of some goods, services, and transactions.

Supply Curve

A graph representing the relationship between the price of a good or service and the quantity of it that producers are willing to supply.

Equilibrium Price

The market price at which the quantity of a good demanded equals the quantity supplied, leading to market stability.