Which of the Following Rations Considers the Relationship Between Profit,equity

question 10

Multiple Choice

Which of the following rations considers the relationship between profit,equity and long-term borrowing?

• A) Quick ratio
• B) Current ratio
• C) Capital gearing ratio
• D) ROCE

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Definitions:

Centralization

The concentration of decision-making power and authority in the hands of a central body or a few individuals within an organization.

Formalization

The process of creating formal rules and procedures to standardize organizational activities and decisions.

Simple Structure

A term used in organizational theory referring to an organizational design with low departmentalization, wide spans of control, centralized authority, and minimal formalization.

Professional Bureaucracy

A decentralized form of organization that emphasizes the expertise of the professionals in the operating core of the organization.