Explanation:

• A (Correct): Activity ratios measure how efficiently a company performs day-to-day tasks, such as inventory management and the collection of receivables. These ratios are directly related to operational efficiency.

• B (Incorrect): Solvency ratios assess a company's ability to meet its long-term obligations. These include leverage and long-term debt ratios, which are not directly related to inventory management.

• C (Incorrect): Profitability ratios evaluate a company's ability to generate profits from its resources (assets). While important, they do not specifically measure inventory management efficiency.

This question aligns with the Financial Statement Analysis topic, which involves calculating and interpreting activity, liquidity, solvency, and profitability ratios.