Selected Information from the 2011 and 2010 Financial Statements of SCL

question 33

Multiple Choice

Selected information from the 2011 and 2010 financial statements of SCL Corporation is presented below:


Refer to the SCL Corporation information above. SCL's quick (acid test) ratio as December 31, 2011, is

• A) 1.44 to 1.
• B) 1.50 to 1.
• C) 1.67 to 1.
• D) 1.66 to 1.

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Definitions:

Flat Structure

An organization structure that has wide spans of control and few hierarchical levels.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Levels of Management

The hierarchical layers of authority in an organization, typically ranging from top management to middle management to lower management.

Chain of Command

A hierarchical structure in an organization defining the authority and communication line from the highest to the lowest ranks.