A Firm Has a Higher Quick (Or Acid Test)ratio Than

question 42

Multiple Choice

A firm has a higher quick (or acid test) ratio than the industry average,which implies.

• A) the firm has a higher P/E ratio than other firms in the industry
• B) the firm is more likely to avoid insolvency in short run than other firms in the industry
• C) the firm may be less profitable than other firms in the industry
• D) a and b
• E) b and c

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Definitions:

Simple Exponential Smoothing

A time series forecasting method for univariate data that applies smoothing factors to make projections, giving more weight to recent observations while considering trends in historical data.

Holt's Method

A forecasting technique that extends exponential smoothing to allow forecasting of data with trends, accommodating changes over time.

Global Supply Chain

A supply chain that extends across international borders, encapsulating a network of suppliers, manufacturers, and distributors involved in producing and delivering products worldwide.

Flexibility

The ability of a system or organization to quickly adapt to changes in demand, technology, environments, or internal processes without significant costs or delays.