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The ________ ratios are primarily designed to measure the operational returns and financial yield performance of an enterprise.

  1. A
    Liquidity
  2. B
    Activity
  3. C
    Debt
  4. D
    Profitability

Solution & Step-by-step Explanation

Financial ratios are classified by their analytical focus:Liquidity Ratios measure short-term cash availability and payment capacity.Activity Ratios measure operational asset efficiency and turnover speed.Debt/Solvency Ratios analyze long-term capital leverage.Profitability Ratios (such as Gross Profit Ratio, Net Profit Ratio, and ROI) measure a company's ability to generate earnings and financial returns relative to its sales, assets, or equity.

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The ________ ratios are primarily designed to measure the operational returns and financial yield performance of an enterprise.
A
Liquidity
B
Activity
C
Debt
D
Profitability

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