Which of the Following Statements Is Most Correct

question 41

Multiple Choice

Which of the following statements is most correct?

• A)The cheapest form of capital is equity.
• B)Companies with the highest current ratios have the most liquidity.
• C)The best indicator of short-term financing needs is the cash flow adequacy ratio.
• D)A faster growing company is more likely to need external financing than a slower growing company.

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Definitions:

Performance Results

The outcomes or achievements resulting from the actions or efforts of an individual or organization.

Operating Objectives

Specific goals and targets that guide the daily functioning of an organization, aiming to ensure efficient and effective operations.

Performance Results

The outcomes achieved from the efforts or actions of an individual or organization, often measured against set objectives or standards.

Manufacturing Bottlenecks

Points in the production process that cause delays due to limited capacity, resulting in slower overall throughput and efficiency.