​One Should Be Wary of Consultants Peddling Best Practices or Secrets

question 11

Multiple Choice

​One should be wary of consultants peddling best practices or secrets to success because

• A)​They have different incentives than you do
• B)Such best practices are public knowledge and easily duplicated
• C)These best practices can at best only provide temporary profitability
• D)​All of the above

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Definitions:

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing current assets excluding inventory by current liabilities.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity of the business.

Financial Data

Quantitative information about financial conditions, performance, and transactions of a business, individual, or entity.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.