In the Current Economic Climate,banks Are Remaining Very Conservative in Their

question 313

Multiple Choice

In the current economic climate,banks are remaining very conservative in their lending practices.Peak Performance Sporting Goods is seeking a loan for expansion.As a loan officer for the local bank,you calculate the acid-test ratio for Peak Performance Sporting Goods.Using the information below,you determine Peak Performance's acid-test ratio = _____.

• A)1.0
• B)1.5
• C)2.5
• D)3.0

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Definitions:

Corporate Shares

Units of ownership interest in a corporation, representing a portion of the corporation's capital.

Certificate of Incorporation

A legal document issued by government authorities granting a company the rights to do business.

Resident District Court Judge

A judge assigned to a specific federal judicial district within the United States, responsible for overseeing cases and legal matters within that region.

Legal Entities

Organizations that have legal rights and obligations, including the ability to enter into contracts and own property, separate from their individual members.