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Most Business Ethicists Suggest the Use of a Decision-Making Process

question 5

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Most business ethicists suggest the use of a decision-making process that includes these three viewpoints:


Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Liquidity Ratios

Financial ratios that measure a company's ability to meet its short-term obligations, such as current ratio and quick ratio.

Activity Ratios

Financial metrics used to measure a company's ability to convert different accounts within its balance sheets into cash or sales.

Activity Ratios

Metrics that assess the efficiency with which a company utilizes its assets to generate revenue or sales.

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