Which of the Following Actions Would Most Likely Have an External

question 172

Multiple Choice

Which of the following actions would most likely have an external benefit?

• A) eating a peanut butter sandwich
• B) throwing trash out your car window as you drive to class
• C) sleeping
• D) attending college
• E) developing a better marketing strategy for Honda

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.

Return on Sales

A financial ratio that calculates a company's net income relative to its revenue, showing how efficiently it converts sales into profits.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of a company.