Which of the Following Statements Is Generally Incorrect from an Investor's

question 38

Multiple Choice

Which of the following statements is generally incorrect from an investor's perspective?

• A) A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
• B) A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period.
• C) A 5% dividend yield is generally preferred over a 3% dividend yield.
• D) A 10% net margin is generally preferred over an 8% net margin.

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Definitions:

One-Way

Communication or interaction that occurs in a single direction, without a reciprocal response from the receiver.

Conflict Theory

A perspective in sociology that sees social conflict as the basis of society and social change, emphasizing a materialist view of society, power dynamics, and inequalities.

Dominant Classes

Social groups that hold primary power and influence over others within a given society, often due to wealth, occupation, or education.

Media Effects

The changes or outcomes in audiences' thoughts, feelings, or behaviors resulting from exposure to media content.