Which of the Following Is Most Likely to Occur If

question 10

Multiple Choice

Which of the following is most likely to occur if a firm over-invests in net working capital?

• A) The current ratio will be lower than it should be.
• B) The quick ratio will be lower than it should be.
• C) The return on investment will be lower than it should be.
• D) The times interest earned ratio will be lower than it should be.

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Definitions:

Intelligence

The ability to acquire and apply knowledge and skills, involving processes like reasoning, problem-solving, and learning.

Achievement

The successful completion or reaching of a goal, often recognized or awarded.

Regressive Racism

A concept indicating subtle forms of racism that may seem progressive or enlightened on the surface but perpetuate racial inequalities or stereotypes.

Modern Racism

A subtle form of racism that coexists with the rejection of racist beliefs, characterized by an outward appearance of racial tolerance while harboring racial prejudices and discriminations.