Which of the Following Statements Accurately Describes a Firm's Resource

question 62

Multiple Choice

Which of the following statements accurately describes a firm's resource stock?

• A) Resource stocks are a firm's level of resources that are common to competitors.
• B) Resource stocks are a firm's future estimate of both tangible and intangible resources.
• C) Resource stocks are a firm's current level of intangible resources.
• D) Resource stocks are a firm's level of investments to maintain or build a resource.

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Definitions:

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.

Merchandise Inventory

Goods and products that a retail business holds in stock with the intention of selling them to customers.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Debt-to-equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, key in assessing financial leverage.