Which of the Following Statements Is Generally Not True from an Investor's

question 30

Multiple Choice

Which of the following statements is generally not true 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.

---

Definitions:

Stakeholders

Individuals or groups that have an interest or stake in the success and activities of a company or project.

Universalization Test

A philosophical concept used in ethics to determine if an action's principle can be applied universally without contradiction.

Universalization Test

A principle in ethics asking whether an action's rationale could be universally applied, contributing to evaluating its moral worth.

Complicity

Involvement as a partner or accomplice, especially in a crime or other wrongful act.