Which of the Following Is Not a Profitability Ratio

question 1

Multiple Choice

Which of the following is not a profitability ratio?

• A) Return on equity
• B) Asset turnover
• C) Return on assets
• D) Quick ratio

---

Definitions:

Normal Good

A type of good for which demand increases as the income of individuals or the economy grows.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives.

Income Effect

A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).

Inferior Good

A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.