A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as ________.
A) efficiency
B) effectiveness
C) stability
D) liquidity
E) profitability

Question

Quizplus · Accepted Answer

Efficiency measures how well a company is using its resources (assets) to generate revenue and profits. The other options (effectiveness, stability, liquidity, and profitability) do not necessarily relate to the company's ability to utilize its assets in this way.

A Company's Ability to Productively Utilize Its Assets Relative to Its