Ponlinaytion, a Clothing Company, Imports Its Raw Materials from Different

Multiple Choice

Ponlinaytion, a clothing company, imports its raw materials from different countries. To cover the cost of expensive raw materials, Ponlinaytion takes a yearly loan of $5 million from Heritage Rimier, a finance company. The remaining budget is covered by the company itself. The given scenario indicates that the firm most likely relies on measuring _____ to decide how it finances its overall operations and growth by using different sources of funds.

A) profitability ratios
B) liquidity ratios
C) asset management ratios
D) leverage ratios