Company a Has Current Assets of $42 Billion and Current

question 111

Multiple Choice

Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?

• A)Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
• B)Company A has greater leverage than Company B.
• C)Company A has less leverage than Company B.
• D)Company A and Company B have roughly equivalent enterprise values.

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Definitions:

Newborns

Infants in their first few weeks of life, characterized by rapid physical and neurological development and high dependency on caregivers.

Mothers

Female parents; women who have given birth to, adopted, or in some cases, act as the primary female caregiver to a child.

Attachment

a deep and enduring emotional bond that connects one person to another across time and space, often highlighted in child-caregiver relationships.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus through the umbilical cord.