Which of the Following Statements Is False

question 73

Multiple Choice

Which of the following statements is false?

• A)A company generally prefers to have a high debt ratio.
• B)The current ratio measures the ability to pay current liabilities with current assets.
• C)The debt ratio measures a business's ability to pay both current and long-term liabilities.
• D)A company generally prefers to have a high current ratio.

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Definitions:

Sustainability Initiative

Programs or projects aimed at promoting environmental, economic, and social sustainability within organizations and communities.

Potential Partners

Individuals, groups, or entities that a business may consider collaborating with for mutual benefit, often to expand markets or share resources.

Exit Strategies

Strategies for withdrawing from a business venture, investment, or situation.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.