If the Current Ratio Is 2

question 83

Multiple Choice

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

• A)$ 6,000
• B)$ 24,000
• C)$ 27,000
• D)$ 45,000

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Definitions:

Empowerment

The process of giving employees power and responsibility to make decisions and contribute to the organization's success, often leading to increased job satisfaction and productivity.

Reward Power

A form of power that is based on the ability to distribute rewards that others view as valuable.

Visionary Leadership

A leadership style characterized by the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or company that grows out of and improves upon the present.

Long-Term Plans

Plans that typically look three or more years into the future.