If We Examine the Ratio of Working Capital to Sales

question 3

True/False

If we examine the ratio of working capital to sales, we can see that for the last several decades, firms' liquidity has been increasing.

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Definitions:

Transplant Organs

Organs removed from one body and placed in another's body for the purpose of replacing a missing or defective organ.

Market

An economic system where goods and services are freely exchanged between buyers and sellers under competitive conditions.

Efficiency

The state or quality of being able to achieve maximum productivity with minimum waste or expense.

Equality

The state or condition of being equal, especially concerning status, rights, and opportunities.