A Company Has Assets of $10 Million and Liabilities of $7

question 24

Multiple Choice

A company has assets of $10 million and liabilities of $7 million.Liabilities include $4 million in accounts payable,$2 million in long-term notes payable and $1 million in other non-current liabilities.If a financial web site uses non-current liabilities rather than total liabilities to calculate the company's debt-to-assets ratio,the web site will report a ratio of:

• A)0.5.
• B)0.4.
• C)0.3.
• D)0.1.

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Definitions:

Network Organisations

Structures where companies or groups operate flexibly, often collaborating through digital connections, to achieve common goals.

Core Functions

The primary activities or operations that are essential for an organization to achieve its mission and goals.

Outsourcing

The practice of hiring third-party vendors to perform services or produce goods that were previously handled internally.

Structural Innovation

The process of changing an organization’s structure, including its systems and processes, to improve performance and adaptability.