The Rule of Thumb for Evaluating Current Ratio Is That

question 66

Multiple Choice

The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is

• A)3.0.
• B)2.0.
• C)1.0.
• D)4.0.

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Definitions:

Tariffs

Taxes on foreign products that discourage imports.

Dumping Activities

Practices where a country or company exports a product at a price lower than the price it normally charges in its own home market, often considered unfair competition.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a specific period, indicating a positive balance of trade.

Subsidy

Financial assistance granted by the government or a public body to support businesses, reduce costs, and encourage economic activities.