A. Provide an example of each of the following types of financial ratios and briefly explain/interpret the meaning for each:

• Profitability ratio
• Liquidity ratio
• Debt management ratio
• Asset management ratio

B. For each of the following questions, identify which of the four categories of financial ratios (see question 1) is best used to answer each one:

• Can the organization afford to borrow more money to finance a planned service line expansion?
• How efficiently is the organization making use of its existing plant and equipment?
• Can the organization effectively meet its short-term obligations?
• How effective is the organization at generating a positive return to support its current operations?