Which of the Following May Be Signs of Future Problems

question 117

Multiple Choice

Which of the following may be signs of future problems for a company?
I. Inventories growing faster than sales.
II. Rapidly increasing debt to equity ratio.
III. Cash flow from operations is higher than net income.
IV. Current liabilities increasing faster than current assets.

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

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Definitions:

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person (self-identity) or group (particular social category or social group).

Exploration And Commitment

Concepts in identity development where exploration involves searching for one's values and options, and commitment involves making decisions about one's identity and sticking to them.

Identity Foreclosure

A stage of self-identity development in which an individual has committed to an identity without exploring options.

Identity Moratorium

A stage in the development of self-identity, characterized by exploration without having made a commitment to these identities.