Which of the Following Would Not Normally Operate as a Service

question 58

Multiple Choice

Which of the following would not normally operate as a service business?

• A) Pet Groomers
• B) Grocers
• C) Lawn Care Company
• D) Styling Salon

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Definitions:

Current Ratio

A ratio indicating the capability of a company to cover its obligations that are due in less than one year, calculated through the division of its current assets by its current liabilities.

Short-Term Creditors

Short-term creditors are lenders or suppliers to whom a company owes money that is due to be paid back within a short period, typically within one year.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value.