The Ratio That Indicates Whether a Company Could Pay All

question 106

True/False

The ratio that indicates whether a company could pay all its current liabilities if they were to become due immediately is known as the acid-test ratio.

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Definitions:

Tall Structure

An organization structure that has narrow spans of control and many hierarchical levels.

Wider Spans of Control

Refers to a leadership approach where a single manager or supervisor oversees a larger number of subordinates, indicating a flatter organizational structure.

Management Costs

Expenses associated with directing and controlling a business or organization.

Organic Design

A management and organizational structure approach emphasizing adaptability, teamwork, and decentralized decision-making.