Which of the Following Signifies That a Company May Be

question 154

Multiple Choice

Which of the following signifies that a company may be unable to pay its current liabilities if they suddenly come due?

• A) Low current ratio
• B) High current ratio
• C) High earnings per share
• D) Low gross profit percentage

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Definitions:

Strategic Behavior

Self-interested economic actions that take into account the expected reactions of others.

International Cartel

An agreement among businesses or countries from different countries to control prices, limit competition, or divide markets.

Fix Prices

The practice of setting and maintaining prices at a certain level, often agreed upon by competitors or mandated by regulation, rather than allowing them to be determined by market forces.

Intel

A leading multinational corporation that specializes in the development of semiconductor chips and microprocessors used in computers.