Doran Corp

question 32

Multiple Choice

Doran Corp.has a current ratio of 6.Under which of the following scenarios might this indicate a problem?

• A) inventories are increasing due to the introduction of a new product
• B) the company is holding cash in expectation of making a large investment in equipment
• C) receivables are increasing due to increasing sales
• D) inventories are increasing and the industry in which Doran Corp.operates is experiencing a recession

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Definitions:

Needs

Basic or essential requirements that individuals or groups seek to fulfill, driving motivation and behavior.

Strategic Plan

A long-term, forward-looking approach with overarching goals and objectives which guides the overall direction of an organization or business.

Ford Motor Company

An American multinational automaker known for automobile manufacturing as well as the production of commercial vehicles and luxury cars.

Automobile Production

The process of manufacturing cars, involving various stages from design and fabrication to assembly and quality control.