You Are Provided This Information About a Retail Store Called

question 32

Multiple Choice

You are provided this information about a retail store called "BoardSports:" BoardSports Industry Mean
Current Ratio 1.5 : 1 2: 1
Quick Ratio .75 : 1 1 : 1
Debt Ratio 0.87 : 1 0.75 : 1
Average Collection Ratio 46 days 33 days
Net Profit on Sales Ratio 5.5% 8.2%
Net Profit to Equity Ratio 7.7% 13.2%
What can you reasonably assess about the current financial status of this company?

• A)The company is in excellent financial condition with no changes required.
• B)The company is in respectable financial condition with no changes required.
• C)The company is in questionable financial condition with minor changes required.
• D)The company is in poor financial condition with significant changes required.

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Definitions:

Iron Law

Refers to the principle of "iron law of oligarchy," which posits that all forms of organization, regardless of how democratic they are at the start, will eventually and inevitably develop oligarchic tendencies.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Organizational Behavior

Organizational behavior is the study of individuals and groups in organizations.

Interchangeable Terms

Phrases or words that can be used in place of each other due to their similar meanings within specific contexts.