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

Assess the implications of financial leverage on a firm's business risk and financial risk.

Identify the processes involved in liquidating a corporation and the associated legal frameworks.

Understand the theoretical frameworks explaining how capital structure affects firm value.

Understand the fundamentals and importance of LEED certification criteria and green manufacturing practices.

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Definitions:

Restatement (Second)

A collection of model laws aimed at clarifying, modernizing, and otherwise improving American common law on various subjects.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American jurisdictions.

Common Law

A system of law based on precedent and court rulings, as opposed to statutes or written legislation.

Legally Enforceable

Capable of being imposed or upheld by law, typically referring to contracts or agreements.