The Smaller the Current Ratio, the Higher Is the Ability

question 120

True/False

The smaller the current ratio, the higher is the ability of a firm to repay its current debts.

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Definitions:

Functional Lines

The division of a business into departments or teams based on functions such as marketing, finance, or operations.

Functional Expertise

Specialized knowledge and skills in a particular area or department within an organization that contribute to its efficiency and success.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically resulting from factors like mass production and bulk purchasing.

Functional Lines

The demarcation of responsibilities and tasks in an organization based on specific functions such as marketing, finance, or human resources.