Wilson Wong received an inheritance from his grandfather. Wilson wants to invest the money in stocks. He is interested in long-term investments in companies with solid financial performance
Explain to Wilson the four major categories of financial ratios and how they are used to help investors analyze the performance of companies.
What will be an ideal response?
The four major categories of ratios are liquidity, solvency, profitability, and market indicators. Liquidity ratios measure whether or not a company can pay its bills on time. Solvency ratios measure whether or not a company can survive over a long period of time. Profitability ratios measure whether or not a company can earn a satisfactory rate of return. Market indicators are used to determine if a stock would be a good investment. Wilson should learn how to use all of these ratios in order to compare companies so that he can select the best stocks for his investments.
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Explain generic political and economic changes as triggers to initiate implementation of a contingency plan
What will be an ideal response?
In banking terminology, a creditor-debtor relationship is created when a customer ________
A) fails to maintain adequate funds in his bank checking account B) makes a deposit into a bank C) writes a check against his account D) writes a postdated check drawn on his bank