As a Short-Term Creditor Concerned with a Company's Ability to Meet

question 7

Multiple Choice

As a short-term creditor concerned with a company's ability to meet its financial obligation to you,which one of the following combinations of ratios would you most likely prefer?
Current Debt
Ratio TIE ratio

• A) 0.5 0.5 0.33
• B) 1.0 1.0 0.50
• C) 1.5 1.5 0.50
• D) 2.0 1.0 0.67
• E) 2.5 0.5 0.71

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Definitions:

Globalization

The trend to opening up foreign markets to international trade and investment.

Technological Change

The process of innovation or introduction of new technology within a company or society.

Needs Assessment

A systematic process to identify and prioritize gaps between current conditions and desired states or outcomes in an organization.

Trainee Readiness

The level at which a new employee or trainee is prepared and willing to undergo training for their new role or task.