One Problem with Ratio Analysis Is That Relationships Can Be

question 53

True/False

One problem with ratio analysis is that relationships can be manipulated.For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase.

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Definitions:

Brand Strategy

A long-term plan to develop a successful brand; it involves how you plan to communicate your brand messages to your target customers.

Target Audience

The specific group of consumers identified as the intended recipients of a product, service, or marketing campaign.

7 Ps

A marketing theory that extends the original 4 P’s (Product, Price, Place, Promotion) to include People, Processes, and Physical evidence.

Bank Representative

An individual working for a bank who is responsible for interfacing with and assisting customers, offering financial advice, and selling banking products.