A Firm Has a Current Ratio of 1

question 41

Multiple Choice

A firm has a current ratio of 1.4 and a quick ratio of .9.Given this, you know for certain that the firm:

• A)pays cash for its inventory.
• B)has more than half its current assets invested in inventory.
• C)has more cash than inventory.
• D)has more current liabilities than it does current assets.
• E)has positive net working capital.

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Definitions:

Associate Resource Groups

Employee-led groups formed within organizations that focus on shared characteristics or experiences, such as gender, ethnicity, or interests, aiming to foster a diverse and inclusive workplace.

Customers Insights Team

A group within an organization focused on analyzing customer data and feedback to drive business strategy and innovation.

Fault Lines

Hypothetical divisions within a group or team, based on demographic, cultural, or organizational differences, that can lead to conflict.

Bad Apples Effect

Refers to the impact that individuals who exhibit undesirable behaviors can have on their peers or the overall environment, often resulting in a negative group dynamic or culture.