If a Firm Increases Its Current Assets Relative to Total

question 246

Multiple Choice

If a firm increases its current assets relative to total assets, ________.

• A) it increases return and reduces risk
• B) it increases return and increases risk
• C) it reduces return and reduces risk
• D) it reduces return and increases risk

---

Definitions:

Minimal Group Effect

The finding that people show favoritism toward ingroup members even when group membership is randomly determined.

Social Groups

Collections of individuals who interact with one another and share similar interests, goals, or characteristics, forming the basis of society.

Realistic Conflict Theory

The idea that competition over scarce resources leads to intergroup hostility and conflict.

Frustration-Aggression

A theory proposing that frustration often leads to aggressive behavior, as aggression is a result of blocked, expected goals.