A Company's Current Ratio Is 1

question 87

True/False

A company's current ratio is 1.2 and its quick ratio is 0.25. This company is probably an excellent credit risk because the ratios reveal no indication of liquidity problems.

---

Definitions:

International Telecommunications

The exchange of information over significant distances through electronic means, connecting different countries and regions globally.

Exploits Labor

The action or process where laborers' work is taken advantage of for profit, often under unfair conditions.

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Sociological Abstracts

An extensive database that provides abstracts of scholarly articles, books, and other sources in the field of sociology and related disciplines.