If We Examine the Ratio of Working Capital to Sales

question 3

True/False

If we examine the ratio of working capital to sales, we can see that for the last several decades, firms' liquidity has been increasing.

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Definitions:

Minimum Sufficiency

The lowest level of effort or input required to achieve a desired outcome or effect.

Internalization

The process by which children adopt adults’ standards and rules as their own.

Power Assertion

A disciplinary method involving the use of authority or physical force to control or correct behavior.

Differential Susceptibility

Some physiological makeups can make an individual more likely to be affected by environmental influences than other people. For example, a child with a highly reactive temperament might be benefited more than other children by positive parenting but harmed more than others by negative parenting.