Which of the Following Groups of Ratios Primarily Measure Risk

question 101

Multiple Choice

Which of the following groups of ratios primarily measure risk?

• A) liquidity, activity, and profitability
• B) liquidity, profitability, and market
• C) liquidity, activity, and debt
• D) activity, debt, and profitability

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Definitions:

Tripling Output

The act of increasing the production or output of goods and services threefold, signifying significant growth or scaling up of operations.

Economies of Scale

Cost advantages companies experience when production becomes efficient, as the cost per unit of output decreases with increasing scale.

General Electric

A multinational conglomerate corporation operating in sectors like aviation, power, healthcare, and renewables, among others.

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.