Basics Beginner: Sources of Company Information

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1.
The amount a company earns from the investments of its shareholders is called return on equity.
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True. Return on equity indicates how well the investments are working for the company.
2.
Net sales measures a company's liquidity.
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False. Net sales measures a company's total cash and credit sales minus any returns or discounts.
3.
Brokerages do not provide company report information.
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False. Brokerages generally do provide company report information.
4.
To find out about a corporation's primary customers, you should look at ______.
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Form 10K. This form also identifies a corporation's suppliers and competitors.
5.
The creditworthiness of a company is measured by _______.
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Debt-to-equity ratio. A low ratio indicates a secure investment.