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Which of These Ratios Is Not Directly Relevant to the Evaluation

question 48

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Which of these ratios is not directly relevant to the evaluation of a company's short-term liquidity position?


Definitions:

Perfectly Elastic

Describing a situation where the quantity demanded or supplied responds infinitely or by an unlimited amount to a change in price.

Horizontal Line

A straight line on a graph that runs parallel to the x-axis, indicating a constant value.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied responds infinitely or extremely to a change in price.

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