An Increase in the Current Asset to Total Asset Ratio

question 53

Multiple Choice

An increase in the current asset to total asset ratio has the effects of ________ on profits and ________ on risk.

• A) an increase; an increase
• B) an increase; a decrease
• C) a decrease; a decrease
• D) a decrease; an increase

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Definitions:

Horizontal Merger

The combination of two or more firms operating in the same industry and at the same stage of production.

Vertical Merger

A merger between two companies that operate at different levels in the production process of the same industry.

Small Business

An independently owned and operated company that is limited in size and revenue, depending on the industry.

Direct SBA Loans

Loans provided directly by the Small Business Administration to small businesses that meet certain qualifications.