Which Ratios Are Specifically Concerned with Assessing the Returns and Performance

question 14

Multiple Choice

Which ratios are specifically concerned with assessing the returns and performance of shares held for investment purposes?

• A)Liquidity ratios
• B)Gearing ratios
• C)Investment ratios
• D)Efficiency ratios

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Copper

A red-brown metal, highly conductive of electricity and heat, used extensively in electrical wiring and in making alloys such as bronze and brass.

Zinc

A metallic element used primarily for galvanizing iron and steel to prevent rust and in alloys such as brass, along with various other applications.

Factor Prices

Prices paid for the use of factors of production such as labor, capital, and land.