If the Only Information You Were Given About Ryan Corporation

question 61

Multiple Choice

If the only information you were given about Ryan Corporation, a large public company in business for many years, was that had a current ratio of 2.9, what could you determine from this?

• A) Nothing, you would also need Ryan Corporation's current ratios from the last few years and the current ratio's from the last few years of Ryan's competitors.
• B) You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.
• C) Nothing, you would also need the current ratio's from the last few years of the S&P 500 Index.
• D) You could determine that Ryan has an activity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.

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Definitions:

Nutrient Exchange

The transfer of nutrients from the mother to the fetus during pregnancy, essential for fetal development.

Ovum

A mature female reproductive cell, especially of a human or other animal, which can fuse with a male gamete in sexual reproduction.

Sperm

Male reproductive cells or gametes involved in sexual reproduction, which can fertilize female gametes (ova) to produce offspring.

Embryonic Period

Occurs from about 2 to 8 weeks after pregnancy, in which rapid structural development takes place.