Paramount, Inc

question 112

Multiple Choice

Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____.

• A) external opportunity
• B) internal strength
• C) external threat
• D) external weakness
• E) congressional chaos

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Definitions:

Average Sales Period

The average time it takes for a company to sell its inventory, indicating the efficiency of its sales and inventory management.

Inventory Turnover Ratio

A metric that indicates how often a company's inventory is sold and replaced over a period of time.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities without relying on the sale of inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.