Match These Terms to Their Correct Definition

question 112

Multiple Choice

Match these terms to their correct definition.
-sum of the dividend payout and share repurchase payout ratios

• A)accounts receivable turnover ratio
• B)cash ratio
• C)gross profit percentage
• D)inventory turnover ratio
• E)net profit margin percentage
• F)operating margin percentage
• G)quick ratio
• H)total payout ratio

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Definitions:

Marginal Utilities

The extra pleasure or benefit a consumer gets from purchasing and using an additional unit of a product or service.

Utility-Maximizing

A principle in economics where consumers aim to achieve the highest level of satisfaction with their choices, subject to their income and the prices of goods and services.

Marginal Utility

Marginal Utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Diminishing Marginal Utility

A principle stating that as a person increases consumption of a product, there is a decline in the satisfaction or utility they derive from each additional unit.