Look Good Corporation Has Current Assets of $1

question 15

Multiple Choice

Look Good Corporation has current assets of $1.1M and current liabilities of $1M. It is close to year-end and it would like to increase its current ratio. Which of the following will achieve this?

• A) Encourage customers to pay their bills more quickly.
• B) Increase short-term borrowings by $0.1M.
• C) Sold building for $0.2M in cash.
• D) Liquidate some of its trading marketable securities.

Understand the impact of cultural customs on business practices and consumer behavior.

Identify the laws regulating international business ethics, particularly the Foreign Corrupt Practices Act.

Understand the principles of dividend discount models (DDM) and their application to stock valuation.

Calculate intrinsic values of stocks using various valuation methods including constant growth DDM, capitalized earnings, and P/E ratios.

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Definitions:

Curriculum Mastery

The extent to which students have learned and are able to demonstrate knowledge and skills as defined by educational standards and goals.

Criticism

The expression of disapproval based on perceived mistakes or faults.

Feedback

Information given to a person or system about its performance, intended to reinforce strengths or address weaknesses.

Separation Anxiety Disorder

A psychological condition in which an individual experiences excessive fear or anxiety about being separated from attachment figures.