A Higher ________ Implies Less Risk of the Firm Experiencing

question 63

Multiple Choice

A higher ________ implies less risk of the firm experiencing a cash shortfall in the near future.

• A) return on asset ratio
• B) market-to-book ratio
• C) current ratio
• D) return on equity ratio

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Definitions:

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence on the part of the defendant, inferred from the very nature of the accident or injury.

Burden Of Proof

The obligation to prove one's assertion or claim in a legal dispute.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation that is designed to protect the public.

Res Ipsa Loquitur

A legal doctrine that allows an inference of negligence to be drawn from the very nature of an accident or injury, in the absence of direct evidence on how the defendant behaved.