The Rule of Thumb for Evaluating Current Ratio Is That

question 77

Multiple Choice

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

• A) 3.0.
• B) 1.0.
• C) 2.0.
• D) 4.0.

---

Definitions:

Res Ipsa Loquitur

A legal doctrine that means "the thing speaks for itself," used in tort law to infer negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved.

Negligent Conduct

A failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Causation

A principle in law and philosophy where a cause is linked to an effect; essential for establishing liability in tort cases.

Intervening Cause

An event that occurs after the defendant's act and contributes to a harm, potentially relieving the defendant of liability.