If Mary Wants to Compare What Her Small Business Owes

question 17

Multiple Choice

If Mary wants to compare what her small business owes to what it owns in order to assess her ability to meet obligations in case of liquidation,she needs to look at the ________ ratio.

• A)quick
• B)total debt turnover
• C)asset turnover
• D)debt-to-net worth

---

Definitions:

Available

Referring to resources or goods that are obtainable and can be utilized.

Perfectly Price Elastic

This refers to a situation where the demand for a product or service changes infinitely with a very small change in price.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity supplied by producers.

Horizontal

A direction or plane that runs parallel to the ground or horizon.