The Current Ratio Is an Example of ________,While Earnings Per

question 84

Multiple Choice

The current ratio is an example of ________,while earnings per share is an example of __________:

• A) a long-term solvency ratio; a leverage ratio
• B) a short-term solvency ratio; an activity ratio
• C) a short-term solvency ratio; a profitability ratio
• D) a leverage ratio; a profitability ratio
• E) an activity ratio; a profitability ratio

---

Definitions:

Market Testing

The process of evaluating the viability of a new product or service through controlled customer exposure, gathering feedback before a full-scale launch.

Planned Obsolescence

A strategy where products are designed with a limited useful life or undergo frequent changes, compelling consumers to purchase new products more often.

Pricing Strategy

The approach a company takes to setting the price of its products or services, based on costs, market demand, competitor pricing, and other factors.

Estimating Costs

The process of predicting the financial resources required to complete a project, production, or any business activity.