Use the Fact Situation in Q5 to Answer the Related

question 25

Multiple Choice

Use the fact situation in Q5 to answer the related question that follows. Assume that at the time of Mary's negligence,the company has failed to pay one of its suppliers of dental products.In this case,the supplier can sue

• A)Mary,Joan,and the corporation.
• B)Mary and Joan alone.
• C)Mary and the corporation.
• D)Mary alone.
• E)all of the above

---

Definitions:

Purchases of Merchandise

Transactions involving the buying of goods for resale, typically used in retail or wholesale businesses.

Acid-Test Ratio

A financial metric that measures a company's immediate liquidity by comparing its most liquid assets to its current liabilities.

Quick Ratio

A liquidity ratio that measures a company's ability to meet short-term obligations with its most liquid assets.

Gross Margin Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, illustrating how effectively a company uses labor and supplies in production.