A Current Ratio of Less Than One Is Not So

question 40

Multiple Choice

A current ratio of less than one is not so much of a concern when the company has a:

• A)low fixed asset turnover ratio.
• B)high days to collect number.
• C)high inventory turnover ratio.
• D)high debt-to-equity ratio.

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Definitions:

Top Managers

Senior executives responsible for the strategic direction and overall success of an organization, typically including roles such as CEO, CFO, and COO.

Strong Cultures

Strong cultures are organizational environments characterized by shared beliefs, values, and practices that strongly influence member behavior and contribute to organizational coherence.

Management Philosophy

An underlying set of principles and beliefs that guide the approaches, practices, and decisions of managers within an organization.

Cultural Symbols

Signs or objects that carry a particular meaning recognized only by members of a culture, serving to communicate ideals, values, and beliefs.