When a Current Ratio Is 3

question 50

True/False

When a current ratio is 3.2, it indicates that the health care organization has only 3% of the cash it needs to cover its liabilities.

---

Definitions:

General Rule

An established guideline or principle that is generally followed or considered as a norm in a particular field or situation.

Herfindahl Index

A measure used to calculate the level of concentration in a market, by summing the squares of the market shares of each firm.

Greater Than

A mathematical symbol (>) denoting that a value on the left is larger than the value on the right.

Four Firms

Often refers to a concentration ratio in economics that measures the output or revenue share of the four largest firms within an industry.