Financial Ratios Are

question 3

Multiple Choice

Financial ratios are

• A)helpful for isolating and analyzing weaknesses in a business
• B)used to define management responsibilities
• C)usually not meaningful because businesses differ from one another
• D)mostly used by lenders

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Definitions:

Loss Aversion

A cognitive bias that describes how the pain of losing is psychologically more powerful than the pleasure of gaining.

Option's Disadvantages

The negative aspects or drawbacks associated with a particular choice or decision.

Sensitivity

The ability of a test or system to correctly identify those with a condition, reflecting how well it detects true positives.

Satisficed

Made a decision that is satisfactory and sufficient, stemming from the combination of "satisfy" and "suffice."