What Does a Tobin's Q Ratio of Greater Than 1

question 22

Multiple Choice

What does a Tobin's Q ratio of greater than 1 indicate?

• A) The company has sufficient liquid assets to cover immediate liabilities.
• B) The company has sufficient liquid assets, excluding inventory, to cover immediate liabilities.
• C) The company presents a significant default risk.
• D) The company is poorly managed.
• E) The company is well managed.

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Definitions:

Leadership Styles

Various approaches to leading, directing, and managing groups and organizations, ranging from autocratic to democratic to transformational styles.

Democratic Style

A leadership approach that involves participatory decision-making, where team members have a say in the process.

Organizing Process

The management function of assigning tasks, grouping tasks into departments, and allocating resources to achieve organizational objectives.

Democratic Leader

A leadership style characterized by involving team members in decision-making processes and promoting participation and collaboration.