Which of the Following Could Offset the Higher Risk Exposure

question 52

Multiple Choice

Which of the following could offset the higher risk exposure a company would face if its current ratio and net working capital were relatively low?

• A) Its current assets would need to be highly liquid.
• B) Its accounts receivable collection policy could increase the average collection period.
• C) It could offer no discounts for early payment by its customers.
• D) It could buy back some of its shares in the open market in order to reduce its equity.

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Definitions:

Resources Flow

The movement and allocation of resources (such as raw materials, finances, and personnel) within an organization to achieve its objectives.

Respect And Values

Principles and behaviors that acknowledge the worth and dignity of individuals and groups, often foundational to healthy relationships and societies.

Diversity

The inclusion and representation of different types of people (such as different races, cultures, genders, etc.) in a group or organization.

Inclusion

The practice of ensuring individuals or groups are valued, respected, and supported fully in an environment, regardless of their backgrounds or characteristics.