The Smaller the Current Ratio,the Higher the Firm's Ability to Repay

question 2

True/False

The smaller the current ratio,the higher the firm's ability to repay its current debts.

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Definitions:

Utility Thinking

A system of thought that focuses the consequences to one person or institution and then weighs the cost against the benefits of performing the action under scrutiny.

Cost-Benefit

An analysis method that compares the anticipated or actual costs of an action to its benefits, aiming to determine its feasibility or value.

Negative Rights Theory

In ethics, the theory that says that rights are human inventions created to escape moral law.

Moral Law

A set of principles and ethical guidelines that are considered to be universally applicable, often tied to religious or philosophical beliefs.