A Fundamental Rethinking and Radical Redesign of a Business System

question 12

Multiple Choice

A fundamental rethinking and radical redesign of a business system is known as _____.

• A)a shared vision
• B)innovation
• C)reengineering
• D)organizational architecture
• E)a learning organization

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets such as cash, marketable securities, and accounts receivable.

Quick Ratio

A metric to evaluate a company's short-term liquidity position, calculated by dividing liquid assets by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Acid-Test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its short-term liabilities with its most liquid assets.