RT Enterprises Has a Current Ratio of Less Than One

question 45

Multiple Choice

RT Enterprises has a current ratio of less than one, and a very high debt-to-equity ratio.Which of the following will management of other companies most likely be reluctant to do?
I.Sign an agreement with RT Enterprises to become a major supplier
II.Sell RT Enterprises goods on credit
III.Expand capacity to better serve the needs of RT Enterprises

• A)I and II
• B)II and III
• C)I and III
• D)I, II, and III

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Definitions:

Thorndike

Edward Thorndike was an influential psychologist known for his work on learning theory and the Law of Effect.

Researchers

Individuals who systematically investigate and study materials, sources, and subjects to establish facts and reach new conclusions.

Operant Behavior

A type of learning where behavior is controlled by consequences, including rewards and punishments.

Rat Pressing Bar

An experimental setup wherein rats are conditioned to press a bar to receive a reward, often used in studies of behavior and learning.