________ measure the efficiency with which an entrepreneur can handle his or her business's resources.

Question

Quizplus · Accepted Answer

Activity ratios measure how efficiently an entrepreneur is managing the resources of the business. Examples of activity ratios include inventory turnover, accounts receivable turnover, and accounts payable turnover. Profitability ratios measure the profitability of the business, leverage ratios measure the debt-to-equity ratio of the business, and inventory ratios only focus on the inventory of the business.

________ Measure the Efficiency with Which an Entrepreneur Can Handle