How Are Manifest Functions Different from Latent Functions

question 38

Multiple Choice

How are manifest functions different from latent functions?

• A) Latent functions are purposeful, manifest functions are accidental.
• B) Latent functions are accepted, manifest functions are rejected.
• C) Manifest functions are intended, latent functions are unintended.
• D) Manifest functions are not recognized, latent functions are recognized.

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Definitions:

Current Ratio

A ratio indicating the capability of a company to cover its obligations that are due in less than one year, calculated through the division of its current assets by its current liabilities.

Short-Term Creditors

Short-term creditors are lenders or suppliers to whom a company owes money that is due to be paid back within a short period, typically within one year.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value.