________ ratios indicate how efficiently the small firm is being managed.
A)Liquidity
B)Profitability
C)Leverage
D)Operating

Question

Quizplus · Accepted Answer

Profitability ratios, such as gross profit margin, net profit margin and return on assets, show how well the small firm is generating profits and utilizing its resources. These ratios indicate the effectiveness of management in controlling costs and generating revenue.

________ Ratios Indicate How Efficiently the Small Firm Is Being