A company's ability to meet its short-term financial obligations is measured by which of the following categories?

A liquidity ratios
B profitability ratios
C activity ratios
D leverage ratios

Correct Answer: liquidity ratios

A company's ability to meet its short-term financial obligations is measured by liquidity ratios. Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital.
Bissoy MCQ
#Management #Strategic Management

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