Doran Corp

question 32

Multiple Choice

Doran Corp.has a current ratio of 6.Under which of the following scenarios might this indicate a problem?

• A) inventories are increasing due to the introduction of a new product
• B) the company is holding cash in expectation of making a large investment in equipment
• C) receivables are increasing due to increasing sales
• D) inventories are increasing and the industry in which Doran Corp.operates is experiencing a recession

---

Definitions:

Geographic Location

The specific physical place or position of something on the earth's surface, determined by coordinates.

Firm Size

The scale or number of employees within a legal practice, affecting its capabilities and client servicing.

Work Experience

The practical engagement and activities someone has undergone within a specific field or occupation.

Area Of Practice

The specific field or category of law that a legal professional, such as a lawyer, specializes in, such as family law, criminal law, or intellectual property.