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Activity ratios: a) Measure how effectively the company is using its assets b) Measure the company's short term ability to pay its maturing obligations c)

Activity ratios:

a) Measure how effectively the company is using its assets

b) Measure the company's short term ability to pay its maturing obligations

c) Measure financial performance and shareholder value creation for a specified time

d) Measure the degree of protection for long term creditors and investors

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