Which of the following is a difference between liquidity ratios and leverage ratios?
A. Liquidity ratios measurehow effectively a firm uses its assets to generate revenue, whereas leverage ratios compare the amount of profit to some measure of resources invested.
B. Liquidity ratioscompare the amount of profit to some measure of resources invested, whereas leverage ratiosmeasurehow effectively a firm uses its assets to generate revenue.
C. Liquidity ratios measure a firm'sability to pay its short-term liabilities as they come due, whereas leverage ratios measure the extent to which a firm relies on debt to meet its financing needs.
D. Liquidity ratios measure the net income per share of common stock outstanding, whereas leverage ratios indicate the earnings per dollar by the owners of a company.
Answer: C
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Entry into emerging markets requires significant investment to develop demand
Indicate whether the statement is true or false
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Which of the following is true of relationships between variables?
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