A Retailer's Liabilities Are Very Low Relative to Its Assets

question 54

Multiple Choice

A retailer's liabilities are very low relative to its assets.The retailer has ________.

• A) low financial leverage
• B) low fixed assets
• C) high asset turnover
• D) low net worth

---

Definitions:

Cognitions

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Learned

Acquired knowledge or skills through experience, study, or being taught.

Learning

A relatively permanent change in behavior, knowledge, capability, or attitude that is acquired through experience and cannot be attributed to illness, injury, or maturation.

Intuition

The ability to understand something instinctively, without the need for conscious reasoning.