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Question 3 1 pts (TRUE or FALSE?) Financial managers use financial ratios, similar to a doctor's blood test examination, to assess the health of businesses.

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Question 3 1 pts (TRUE or FALSE?) Financial managers use financial ratios, similar to a doctor's blood test examination, to assess the health of businesses. TRUE O FALSE D Question 4 1 pts (TRUE or FALSE?) Financial ratios are generally divided into five categories: systematic risk, unsystematic risk, total risk, diversifiable risk, and market risk. FALSE O TRUE Question 5 1 pts (TRUE or FALSE?) Inventory Turnover Ratio measures the number of times per year the firm converts its interest expense to Net Income. FALSE O TRUE D Question 6 1 pts (TRUE or FALSE?) Liquidity Ratios measure how the market perceives the value of the firm relative to its value as derived from book value earnings. TRUE O FALSE Question 7 1 pts (TRUE or FALSE?) Market Value Ratios measure how the market perceives the value of the firm relative to its value as derived from book value earnings. O TRUE O FALSE D Question 8 1 pts (TRUE or FALSE?) Net Profit Margin ratio measures profit remaining per dollar of sales net of all expenses and it is a comprehensive measure of cost control. O TRUE O FALSE

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