Financial Analysts Suggest That a Small Business Should Maintain a Current

question 39

Multiple Choice

Financial analysts suggest that a small business should maintain a current ratio of at least ________.

• A)1:1
• B)2:1
• C)3:1
• D)4:1

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Definitions:

Natural Log

A logarithm to the base e (where e is approximately 2.71828), used extensively in mathematical, economic, and scientific applications.

Risk Averter

An individual or entity that prefers to avoid uncertainty and potential losses when making investment or financial decisions.

Expected Value

In probability theory, it is the weighted average of all possible values of a random variable, with weights being the probabilities of each outcome.

Natural Log

The logarithm to the base e, where e is an irrational and transcendental constant approximately equal to 2.71828.