Ratios Used to Determine Whether or Not a Company Can

question 238

Multiple Choice

Ratios used to determine whether or not a company can survive over a long period of time are ________.

• A)liquidity ratios
• B)solvency ratios
• C)profitability ratios
• D)market indicators

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Definitions:

Capital Investments

Expenditures by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Personal Control

The use of frequent human interaction to enforce control.

Normative Control

Control that gets subunits to adhere to the values of the organization.

Human Interaction

The communication and relationships between people, whether in person or through digital means.