Which of the Following Would Be an Appropriate Interpretation of a Current

question 63

Multiple Choice

Which of the following would be an appropriate interpretation of a current ratio of 1.76?

• A) The company earned $1.76 for every dollar of assets.
• B) The company has $1.76 of current assets for every dollar of current liabilities.
• C) The company's debt is 176% of its capital structure.
• D) The company has $1.76 of current assets for every dollar of total assets.

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Definitions:

Structural Holes

Concept in social networks that refers to the gaps between different clusters or groups of individuals, which can create opportunities for information brokerage or innovation.

Disconnections

The interruptions or loss of linkages in networks, systems, or relationships.

Work Team

A group of individuals working collaboratively towards common goals, leveraging diverse skills and knowledge.

Empowerment Skill

The ability to give individuals or teams the autonomy, resources, and capabilities to influence their work and decision-making process.