Which of the Following Financial Ratios Is the Best Measure

question 115

Multiple Choice

Which of the following financial ratios is the best measure of the operating effectiveness of a firm's management?

• A) Current ratio
• B) Gross profit margin
• C) Quick ratio
• D) Return on investment

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Definitions:

Habituation

The diminishing response to a frequently repeated stimulus over time.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others, also known as modeling.

Operant Conditioning

An instructional process wherein the forcefulness of a behaviour is changed by the application of incentives or deterrents.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.