Firms That Have a Majority of Their Own Stock in Their

question 38

Multiple Choice

Firms that have a majority of their own stock in their employee 401(k) plans include:

• A)General Electric.
• B)Pfizer.
• C)Procter and Gamble.
• D)All of the Answer s are correct.

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to meet short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Current Assets

Resources anticipated to be transformed into cash, disposed of, or used up within the span of one year or throughout the duration of the operating cycle, depending on which of the two periods extends further.

Current Liabilities

Financial obligations or debts a company is due to pay within a year.

Product Warranty

A promise made by a seller to a buyer to repair or replace a product within a specific time frame if it is found to be defective.