If a Company Has a Healthy Current Ratio but a Significantly

question 46

Multiple Choice

If a company has a healthy current ratio but a significantly lower quick ratio,then you can assume that:

• A) the cost of goods sold represents more than half of sales.
• B) current liabilities exceed current assets.
• C) the firm sells only on a cash basis.
• D) inventory represents a large portion of the firm's current assets.

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Definitions:

Authoritative Leadership

A leadership style characterized by an individual who commands respect and obedience, directing actions with a clear vision and firm decision-making.

Team Excellence

The superior performance and outcomes achieved by a group of individuals working together effectively.

Team Leadership Model

A framework outlining the roles and functions of leaders within a team setting to optimize performance and achieve objectives.

Environmental Context

The external factors that influence an organization or individual's behavior, including economic, social, political, and ecological conditions.