Which of the Following Is a Liquidity Ratio

question 15

Multiple Choice

Which of the following is a liquidity ratio?

• A) Quick ratio
• B) P/E- ratio
• C) Inventory turnover
• D) Equity multiplier

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Definitions:

Normal Profit

The level of profit that is necessary for a company to remain competitive in the market, often seen as the minimum acceptable return.

Allocative Inefficiency

A situation where resources are not allocated optimally, leading to a loss of economic efficiency.

Marginal Cost

The incremental cost involved in producing one more unit of a good or service.

Pure Monopolist

A market structure where a single company exclusively controls the entire supply of a product or service without any competition.