During the dot-com boom-and-bust,a new ratio was used to keep track of how quickly firms were using up their cash balances.What was the term used to describe this ratio?
A)fixed ratio
B)current ratio
C)burn rate
D)velocity of money

Question

Quizplus · Accepted Answer

The term used to describe how quickly firms were using up their cash balances during the dot-com boom-and-bust was the "burn rate." It refers to the rate at which a company is spending its available cash to cover operating expenses before it becomes profitable. The burn rate was a critical metric during the dot-com era, as many companies were burning through cash quickly without generating any revenue, leading to the eventual burst of the dot-com bubble.

During the Dot-Com Boom-And-Bust,a New Ratio Was Used to Keep