A Firm Has a Current Ratio of 1

question 92

Multiple Choice

A firm has a current ratio of 1.To increase that ratio the firm might ________.

• A)develop a better inventory management system so the firm doesn't have to hold as many items in inventory at one time
• B)hold lower cash balances at the bank and increase holdings of interest-earning marketable securities
• C)take out a long-term bank loan and simultaneously offer customers better credit terms,allowing them to pay their bills more slowly
• D)issue bonds and use the proceeds to purchase new equipment

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Definitions:

Free Meals

Complimentary food offerings provided by an establishment, often as a part of a promotional deal or as a benefit of service.

Functional Needs

The practical or utilitarian requirements that a product or service must satisfy for the consumer, such as durability, convenience, and efficiency.

Retain Loyal Customers

Strategies or practices aimed at keeping customers who repeatedly buy or use a brand's products or services.

Profit Margins

The percentage of revenue that remains as profit after all expenses have been deducted from total sales.