A Small Company Has Current Assets of $1 112 000

question 59

Multiple Choice

A small company has current assets of $1 112 000 and current liabilities of $717 000. Which of the following statements about that company is most likely to be true?

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

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Definitions:

Migration Paths

Routes or movement patterns that populations or individuals follow to relocate from one area to another.

African Society

The diverse cultures, societies, economies, and histories of the African continent.

Slavery

A regime where people are held by others, stripped of their autonomy, and forced to undertake work or services.

Borderlands Area

Regions that exist on or near the boundaries between countries, often characterized by a blending or clashing of cultures, economies, and histories.