Use the Table for the Question(s) Below

question 5

Multiple Choice

Use the table for the question(s) below.
Balance Sheet
Net property, plant,

-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in quick ratio between 2007 and 2008?

• A) The company has eliminated the risk that it will experience a cash shortfall in the near future.
• B) The company has reduced the risk that it will experience a cash shortfall in the near future.
• C) The risk that the company will experience a cash shortfall in the near future is unchanged.
• D) The company has increased the risk that it will experience a cash shortfall in the near future.

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Definitions:

Process Reengineering

The radical redesign of core business processes to achieve dramatic improvements in productivity, efficiency, and quality.

Total Quality Management

An organizational approach focusing on continuous improvement in all aspects of business, aimed at achieving long-term customer satisfaction.

Timeliness to Market

The strategy of bringing a product or service to the market at the right time to maximize its acceptance or competitive advantage.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality, service, and speed.