Refer to the Scenario Below to Answer the Following Questions

question 66

Multiple Choice

Refer to the scenario below to answer the following questions.
Financial Ratios (Scenario)
Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice-president, Donna. Donna had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape. Jan realized that this was a great career opportunity-one that could make or break her reputation with the new vice-president. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations.
-Donna was also very interested in examining the organization's use of debt to finance its assets. Therefore, Jan needed to calculate a(n) __________ ratio.

• A) leverage
• B) activity
• C) profitability
• D) equity
• E) probability

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Definitions:

Preindustrial Cities

Urban areas that existed before the widespread use of industrial machinery and the industrial revolution, characterized by simpler economic and social structures.

Urban Population

Refers to the segment of a country's population that resides within towns and cities as opposed to rural areas.

Quebec

Quebec is a province in Canada, characterized by its French heritage, language, and culture, making it a unique region within the predominantly English-speaking country.

Viable

Capable of working successfully; feasible or capable of living, growing, or developing under given conditions.