How Did Incomplete Information Cause Kuwait to Make a Mistake

question 50

Multiple Choice

How did incomplete information cause Kuwait to make a mistake when Iraq threatened to attack in 1990?

• A)Kuwait did not have diplomatic relations with Iraq and therefore did not have an opportunity to make concessions to Iraq.
• B)Kuwait did not know that Saddam Hussein was willing to wage war and decided not to make sufficient concessions.
• C)Kuwait did not know that Saddam Hussein had moved many of his troops to the border between Iraq and Kuwait.
• D)Kuwait had decided to make the concessions that Saddam Hussein wanted,but the message to Iraq was not properly sent by Kuwaiti bureaucrats.
• E)Kuwait did not know that the United States would come to its aid if a war was to occur.

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Definitions:

Current Assets

Resources anticipated to be turned into cash, sold off, or used up within a year or over the course of the operational cycle, depending on which period extends further.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Accounts Receivable Turnover

A financial metric that measures how many times a company collects its average accounts receivable balance within a specific period.

Preceding Year

Refers to the year that immediately comes before the current year.