The Current Ratio Is Calculated by

question 12

Multiple Choice

The current ratio is calculated by

• A) dividing current assets by current liabilities.
• B) dividing current liabilities by current assets.
• C) dividing total assets by total current assets.
• D) dividing current assets by total assets.

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Definitions:

Organizational Structure

The way in which the work, authority, and systems of communication are organized within a company or institution.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Cost Leadership

A business strategy aimed at becoming the lowest cost producer in the industry, allowing the company to undercut competitors on price while maintaining profitability.

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors, potentially leading to greater market share and profitability.