For Several Years,Shaun Corporation Has Had a Current Ratio That

question 173

Multiple Choice

For several years,Shaun Corporation has had a current ratio that was consistent with other companies in its industry.For the most recent year,Shaun's current ratio was significantly higher than that for the industry.What is the best possible explanation for this situation?

• A)The other companies in the industry were not as profitable.
• B)Shaun's liquidity has improved or is not leveraging financial resources effectively.
• C)Shaun has less property,plant and equipment than other companies.
• D)Shaun has too much debt.

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Definitions:

Low Levels

A term which in general use can refer to decreased, minimal, or insufficient amounts of a specified entity or quality, applicable in various contexts such as energy, interest, or resources.

Hostility

Aggressive behavior or attitudes often stemming from anger or antagonism towards others.

Relational Aggression

Relational Aggression involves harm within relationships through manipulation, exclusion, or damaging someone's social standing, distinct from physical aggression.

Subtle Aggression

A form of indirect aggression characterized by understated or concealed actions aimed at harming another individual emotionally or psychologically.