The Bates Lighting Company Has Two Divisions, Business and Consumer

question 63

Multiple Choice

The Bates Lighting Company has two divisions, business and consumer products. Because of poor profits, it may downsize the consumer division. This could mean loss of jobs for people involved with the marketing of:

• A) overhead lighting for hospital operating rooms.
• B) flashlights for buildings that lose power.
• C) designer lighting for furniture showrooms.
• D) desk lamps for offices or college dorms.
• E) street lights.

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Definitions:

Quick Ratio

A financial metric indicating a company's ability to meet short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A financial metric used to measure a company's ability to pay its short-term liabilities with its short-term assets.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.