Based on the Following Data, What Is the Acid-Test Ratio

question 27

Multiple Choice

Based on the following data, what is the acid-test ratio, rounded to one decimal point?

• A) 3.4
• B) 3.0
• C) 2.2
• D) 1.8

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Definitions:

Flat Hierarchy

An organizational structure with few or no levels of middle management between staff and executives, which can encourage more open communication and quicker decision-making.

Formalization

The process of establishing official procedures, rules, and documentation within an organization.

Work Processes

The established methods and procedures used to effectively complete tasks and achieve organizational goals.

Functional Structure

An organizational design that groups employees by their similar specialties, roles, or tasks.