George Recently Learned That His Son Was Going to Need

question 7

Multiple Choice

George recently learned that his son was going to need some supplemental instruction to help him be successful at school; however, the extra assistance would cost a lot of money and George had not prepared for the expense. With two months to go before the extra bills would start coming in, George started working four extra hours a week and saving the additional money to pay for the tutors. When the time came for the extra instruction to begin, George had saved more than enough to pay for the help for his son. George has used ________ coping to deal with the unexpected stress of new expenses.

• A)reactive
• B)informational
• C)decisional
• D)proactive

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Definitions:

Profitability

Refers to a company's ability to generate income relative to its revenue, operating costs, and other expenses over a certain period.

Solvency

The ability of a business to meet its long-term debts and financial obligations.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its available liquid assets.

Profitability Ratio

Financial metrics that are used to assess a business's ability to generate income relative to its revenue, assets, or equity.