For Firms That Sometimes Have Difficulty Selling Their Inventory, the Current

question 356

True/False

For firms that sometimes have difficulty selling their inventory, the current ratio is likely to be a better measure of liquidity than the acid-test ratio.

---

Definitions:

Expectancy Model

is a psychological theory that explains motivation in terms of an individual's expectations about their ability to achieve desired outcomes through their actions.

Inequity

The state of being unfair or unequal, often in the context of rewards or treatment.

Equity Theory

A theory in social psychology that explains how individuals assess their own job inputs and outcomes in relation to others, aiming for fairness in exchange relationships.

Tension

The state of being stretched tight, which can refer to physical objects, mental states, or relationships between people or groups.