Table 15.1 Irish Air Services Has Determined Several Factors Relative to Its

question 18

Multiple Choice

Table 15.1
Irish Air Services has determined several factors relative to its asset and financing mix.
(a) The firm earns 10 percent annually on its current assets.
(b) The firm earns 20 percent annually on its fixed assets.
(c) The firm pays 13 percent annually on current liabilities.
(d) The firm pays 17 percent annually on long-term funds.
(e) The firm's monthly current, fixed and total asset requirements for the previous year are summarized in the table below:
-The firm's initial ratio of current to total asset is ________. (See Table 15.1)

• A) 1:3
• B) 3:1
• C) 2:3
• D) 3:2

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Definitions:

Efficient Use

The utilization of resources in a manner that maximizes the production of goods and services.

Resources

Assets or inputs available for use in the production process, including natural, human, and capital resources.

Opportunities

Refer to situations where individuals or organizations can exploit conditions to achieve goals or positive outcomes.

Efficient

The most efficient employment of resources to attain the intended result while minimizing waste or exertion.