Historically, It Was Thought That the Current Ratio Should Be

question 27

Short Answer

Historically, it was thought that the current ratio should be _________, but more recently, many firms that are financially strong operate with current ratios of ___________.
at least 10:1; less than 5:0
more than 7:1; 2.0
less than 5:1; more than 10:1
2:1; less than 2:1
3:1; less than 5:1

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Definitions:

Basic Goals

Fundamental objectives or aims that an individual or organization strives to achieve.

Perceived Threat

An individual's subjective assessment of the potential harm or danger that a specific situation or action may cause.

Extreme Inertia

The tendency of an object or an entity to resist any change in its state of motion or rest, greatly magnified in intensity or effect.

Institutionalize

To establish a norm, practice, or procedure as a convention or standard within an organization or society.