_____ Show the Relative Amount of Funds in the Business

question 23

Multiple Choice

_____ show the relative amount of funds in the business supplied by creditors and shareholders.

• A) Liquidity ratios
• B) Current ratios
• C) Net working capital ratios
• D) Leverage ratios
• E) Profitability ratios

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Definitions:

Free Markets

An economic system in which prices are determined by unrestricted competition between privately owned businesses, without government intervention.

Efficiency

The optimal allocation of resources to produce the maximum amount of goods and services, with the least waste of resources.

Pareto Optimality

Pareto Optimality is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Income Distribution

Income Distribution refers to the way in which total income is shared among the members of a society.