Question

What do Activity Ratios measure in financial management?

a.

Profitability of the business

b.

Efficiency and efficacy of the employment of resources

c.

Rate of return on sales

d.

Rate of return on capital employed

Answer: (b).Efficiency and efficacy of the employment of resources Explanation:Activity Ratios measure the efficiency and efficacy of the employment of resources in financial management.

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Q. What do Activity Ratios measure in financial management?

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