All Other Things Being Equal, a Policy of Holding a Relatively

question 64

Multiple Choice

All other things being equal, a policy of holding a relatively ____ proportion of the firm's total assets in the form of current assets will tend to result in a ____ risk of the firm encountering financial difficulties.

• A) large; higher
• B) small; higher
• C) constant; higher
• D) constant; lower

---

Definitions:

Code

A systematic collection, compendium, or revision of laws, rules, or regulations.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform international sales law.

Fix An Additional Period

Fixing an additional period involves granting an extension of time for the performance of an obligation or completion of a task.

Insolvent

Insolvent is a financial term used to describe a situation where an individual or entity is unable to meet their debt obligations due to insufficient assets.