As a Short-Term Creditor Concerned with a Company's Ability to Meet

question 58

Multiple Choice

As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one of the following combinations of ratios would you most likely prefer?

• A) 0.5 0.5 0.33
• B) 1.0 1.0 0.50
• C) 1.5 1.5 0.50
• D) 2.0 1.0 0.67
• E) 2.5 0.5 0.71

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Definitions:

Family Of Orientation

The family into which a person is born or adopted.

Social Class

A group of people who have a similar standing or rank based on wealth, education, power, prestige, and other valued resources.

Valued Resources

Assets or commodities that are highly regarded and sought after in a society due to their usefulness or perceived worth.

Similar Standing

Refers to individuals or groups that share a comparable level of status, position, or condition within a society or specific context.