Grey Company Has a Current Ratio of 0

question 65

Multiple Choice

Grey Company has a current ratio of 0.35 and return on equity of 0.04. Which of the following statements is the best regarding Grey's profitability and solvency?

• A)Grey is very profitable, but not very solvent.
• B)Grey is very profitable and very solvent.
• C)Grey is not very profitable, but very solvent.
• D)Grey is not very profitable and not very solvent.

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Definitions:

Service Dominant Logic

A perspective that sees service, rather than goods, as the fundamental basis of exchange and views all economic activity as service.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, traditionally categorized as product, price, place, and promotion.

Liquid Consumption

A term reflecting the shift in consumer behavior towards more flexible and changeable purchasing patterns.