The Various Causes That Increase the Chances of Business Failures

question 6

True/False

The various causes that increase the chances of business failures are current ratio of 1.33, solvency ratio of greater than 20%, and rapid decrease in days' sales outstanding.

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Definitions:

VFD Technology

Variable Frequency Drive technology, enabling control of the speed and torque of electric motors by varying the input frequency and voltage.

Phase Motors

Electric motors designed to operate on a specific number of phases of alternating current, each providing a distinct power cycle.

VFDs

Variable Frequency Drives, electronic devices that control the speed of an electric motor by varying the frequency and voltage supplied to the motor.

Fractional Horsepower

Describes motors that have a power rating less than one horsepower, often used in low power applications such as household appliances and small machinery.