Chapter 7 -Managing a business is made much easier by the use of ratios.There are 7 basic types of ratios.In this chapter we discuss some of the basic ratios that managers use regularly and how they are applied. By the time you are done, you will have discussed the difference between liquidity, profitably and cost management.

Where do you see metrics applied? A clue could be the department managers in the firm you work for and the metrics that they use to measure performance. In your personal life, consider your health and think about the metrics a physician uses to discuss your health.