A Small Company Has Current Assets of $112,000 and Current

question 77

Multiple Choice

A small company has current assets of $112,000 and current liabilities of $117,000.Which of the following statements about that company is most likely to be TRUE?

• A)Since net working capital is negative,the company will not have enough funds to meet its obligations.
• B)Since net working capital is high,the company will likely have little difficulty meeting its obligations.
• C)Since net working capital is very high,the company will have ample money to invest after it meets its obligations.
• D)Since net working capital is nearly zero,the company is well run and will have little difficulty attracting investors.
• E)Since net working capital is negative,the company will likely have little difficulty meeting its obligations.

Understand how the Charter of Rights and Freedoms and other constitutional documents influence legislation and individual rights, including the use of the notwithstanding clause.

Recognize the significance of Canada's bilingual status and its implications on provincial legislation.

Evaluate the potential remedies and outcomes in scenarios where the application of common law results in hardship.

Explore the intersection of employment law and constitutional rights regarding mandatory retirement policies.

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Definitions:

Partnership Name

The official legal name under which a partnership business operates and is recognized.

Both Partners

In the context of business or law, it refers to the mutual and joint responsibility or involvement of two parties in an agreement or venture.

Individual Partner

A member of a partnership who contributes capital, participates in management, and is personally liable for partnership debts.

Dissolution

The process of formally ending or dismissing a legal entity or agreement, such as the dissolution of a corporation or marriage.