Which Business Would You Expect to Have the Highest Current

question 53

Multiple Choice

Which business would you expect to have the highest current ratio?

• A) retailer
• B) manufacturer
• C) service business that sells for cash
• D) service business that sells on credit

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Definitions:

Jack Stack

A business leader and author known for pioneering the concept of open-book management and the principle of teaching employees about finance and business strategies.

Psychological Size

The perceived power one person has over another; the ability to make others feel weak and dependent; the ability to determine careers, decide wages, and make job assignments; an important concept for people in authority positions. The abuse of psychological size results in resentment and rebellion, or apathy and dependence, whereas the effective use of psychological size results in maximum morale and productivity.

Open-Book Management

A business strategy that involves sharing financial and operational information with employees to involve them more in decision-making and improve business results.

Approach

The method or strategy used to tackle a problem, task, or situation, often implying a specific angle or direction.