A Company Has a Current Ratio of 0

question 76

Multiple Choice

A company has a current ratio of 0.85 to 1.What should a manager in the company worry about?

• A)The company has too many assets and is not using them efficiently.
• B)The company has too much inventory.
• C)The company may start to have trouble paying salaries.
• D)The company is paying salaries that are too high.

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Definitions:

Economic Dependence

A situation where the economic conditions and performance of one country or region are heavily influenced by another.

Government Corruption

The misuse of public power for private benefit, typically through bribery, embezzlement, or other illicit means, undermining public trust and efficiency.

Basic Development Projects

Initiatives or plans aimed at improving economic, social, or infrastructural conditions in a region or community.

World Bank

A global finance body that supplies loans and grants to the administrations of poorer nations aiming to undertake capital projects.