Which Type of Ratio Measures How Effectively the Firm Uses

question 67

Multiple Choice

Which type of ratio measures how effectively the firm uses its resources to generate income?

• A) Activity
• B) Liquidity
• C) Profitability
• D) Leverage
• E) Market

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Definitions:

Objects

Physical items that can be seen and touched.

Self-Fulfilling Prophecy

A phenomenon where a belief or expectation, whether correct or not, influences the outcome in a way that confirms the belief.

Expectations

Anticipated outcomes or behaviors in a given situation.

Behavior

The actions or reactions of an individual or group, often in response to their environment.