The More Capital a Firm Is Likely to Require,the Greater

question 53

True/False

The more capital a firm is likely to require,the greater the probability that it will be organized as a corporation.

---

Definitions:

Current Ratio

A financial ratio indicating how well a company can settle short-term debts with its available assets.

Total Assets

The total of all properties a company owns, encompassing both short-term and long-term assets.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Solvency

The ability of a company to meet its long-term financial commitments and continue its operations.