It Takes _____ to Innovate Successfully

question 56

Multiple Choice

It takes _____ to innovate successfully.

• A) work, not rest,
• B) rest, not work,
• C) work, not genius,
• D) genius, not work,

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Definitions:

Economic Earnings

The real flow of cash that a firm could pay out without impairing its productive capacity.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.

Current Ratio

Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by liquidating current assets.

Acid Test

A stringent test that measures the liquidity of a company by calculating its quick assets (excluding inventory) against its current liabilities.