Company a Has Current Assets of $42 Billion and Current

question 44

Multiple Choice

Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?

• A)Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
• B)Company A has greater leverage than Company B.
• C)Company A has less leverage than Company B.
• D)Company A and Company B have roughly equivalent enterprise values.
• E)Company A is more likely than Company B to have sufficient working capital to meet its short-term needs.

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Definitions:

Human History

The recorded or studied past of the human species, encompassing historical events, cultures, advancements, and transformations through time.

Neandertals

An extinct species of human that was widely distributed in ice-age Europe between c. 120,000-35,000 years ago, coexisting with early Homo sapiens.

Gracile Australopithecines

One member of the genus Australopithecus possessing a more lightly built chewing apparatus; likely had a diet that included more meat than that of the robust australopithecines.

Human Ancestors

Prehistoric species and genera that are considered predecessors of modern humans in the evolutionary lineage.