Diamond Electronics Has Ascertained That It Is Has Positive Working

question 71

Multiple Choice

Diamond Electronics has ascertained that it is has positive working capital.Which of the following must be true of Diamond Electronics?

• A) The firm's current liabilities are large enough to pay off current assets.
• B) The firm may need to borrow money from a commercial bank.
• C) The firm's current assets are large enough to pay off current liabilities.
• D) The firm does not need to issue stock.
• E) The firm would be a bad risk for any investor to consider.

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Definitions:

Growth Capacity

The potential of an entity or environment to expand, increase, or develop further, often measured in terms of productivity or population.

Environment Capacity

The maximum population size of a species that the environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Supply Of Resources

The availability or provision of natural, economic, or human elements necessary for production or survival.

Reproductive Time Lag

The delay between the onset of sexual maturity and the age at which an organism first reproduces, influenced by factors like genetics, nutrition, and environmental conditions.