Brownstone Company Has a Current Ratio of 4

question 88

Multiple Choice

Brownstone Company has a current ratio of 4.00.This indicates that the company has $4 in ________.

• A) current liabilities for every $1 of current assets
• B) total assets for every $1 of current liabilities
• C) current assets for every $1 of current liabilities
• D) total assets for every $1 of current assets

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Definitions:

Strategic Planning

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Vision

A forward-looking statement or concept that outlines what an organization or individual aspires to achieve in the future.

SWOT Analysis

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a firm can then develop the best strategies for gaining a competitive advantage.

Low-cost Producer

A business or manufacturer that can produce goods or services at a lower cost than competitors, often due to economies of scale, technology, or efficient processes.