What Is the Current Ratio

question 147

Multiple Choice

What is the current ratio?

• A) 1.2 to 1.
• B) Less than 2 to 1, but not 1.2 to 1.
• C) 2.6 to 1.
• D) More than 2 to 1, but not 2.6 to 1.

---

Definitions:

Human Capital Investments

Are investments people make in themselves to increase their value in the workplace. These investments might take the form of additional education or training.

Differentiate

To distinguish or set apart different items, concepts, or entities based on their unique characteristics or qualities.

Organization Anticipates

The process by which organizations attempt to foresee future challenges or opportunities and prepare accordingly.

Retrenchment

A retrenchment or turnaround strategy occurs when an organization finds that its current operations are not effective, and major changes are usually needed to rectify the problem. In most cases, this strategy involves rightsizing the organization by closing operations, shutting down factories, and terminating employees in order to get back on the right track.