Ratios that measure how efficiently a firm uses its assets to generate sales are known as:

A. Long term solvency ratios.

B. Short-term solvency ratios.

C. Asset management ratios.

D. Market value ratios.

E. Profitability ratios.

1. Which of the following is a capital structure decision?

   	A.	Should the level of inventory be increased?
   	B.	Should the credit terms offered to customers be revised?
   	C.	Should a new machine be purchased this year?
   	D.	Should debt or equity financing be used to purchase a building?