Titans Electronics Titans Electronics Reports the Following Data for the Past Year

question 1

Multiple Choice

Titans Electronics
Titans Electronics reports the following data for the past year:

-Titans Electronics is applying for a new line of credit from their banking partner.To issue the credit,the bank requires the following cutoffs for certain financial ratios:
TIE ratio of 4.25 Current Ratio of 1.50 ROA of 5%.
What is a likely response from the bank to the application?

• A) The bank will have reservations, as the TIE ratio does not meet requirements.
• B) The bank will have concerns, as the current ratio does not meet requirements.
• C) The bank will have concerns, as the ROA is not high enough.
• D) The bank will have concerns, as two or more of the requirements are not met.

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Definitions:

Psychoanalytic Theory

A theory of personality development and therapeutic framework that asserts human behavior is influenced by unconscious motives and conflicts, developed by Sigmund Freud.

Fixation Causes

Explains the reasons behind an individual's persistent focus on an earlier psychosexual stage, leading to various personality traits due to unresolved conflicts.

Overindulgence

The excessive gratification of desires or indulgence in activities, often leading to negative consequences or unhealthy habits.

Freud

The founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.