A Policy to Protect Businesses Against the Broad Range of Loss

question 111

Multiple Choice

A policy to protect businesses against the broad range of loss exposures arising from their use of the Internet and their holding of confidential information is called a _____ policy.

• A) social media liability
• B) cyber liability
• C) employment practices
• D) business owner's

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Definitions:

Liquidity Ratios

Financial metrics used to assess a company's ability to meet its short-term debt obligations, by comparing current assets to current liabilities.

Debt-Paying Ability

A financial metric used to gauge a firm's capacity to settle its obligations, often assessed through ratios such as the debt to equity or debt service coverage ratios.

Operating Cycle

The duration it takes for a company to buy inventory, sell that inventory, and collect cash from the sale, representing the time it takes to convert resources into cash flows.

Notes Payable

A liability recorded on a balance sheet, representing a written promise to pay a certain amount in the future.