Which of the Following Would Indicate an Improvement in a Company's

question 87

Multiple Choice

Which of the following would indicate an improvement in a company's financial position,holding other things constant?

• A) The inventory and total assets turnover ratios both decline.
• B) The total debt to total capital ratio increases.
• C) The profit margin declines.
• D) The times-interest-earned ratio declines.
• E) The current and quick ratios both increase.

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Definitions:

Group Pressure

The influence exerted by a group on its members to align their attitudes, beliefs, or behaviors with the group norms.

Solomon Asch

He was a psychologist best known for his research on conformity, showing how individuals often conform to the opinions of the majority even when they are contrary to their own beliefs.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is perceived as social norms.

Normative Social Influence

The effect other individuals have on us, causing conformity so we gain their approval and acceptance.