What Is a Weakness of the Current Ratio

question 76

Multiple Choice

What is a weakness of the current ratio?

• A) Hard to calculate.
• B) Hard to obtain the information.
• C) Favors companies with many current assets, but doesn't measure the overall company strength.
• D) Doesn't consider enough financial information to be useful.

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Definitions:

Cross-cultural Competencies

The knowledge, skills, and attributes required to effectively operate or interact in different cultural contexts, crucial for global leadership and international relations.

Discrimination

Unfair or prejudiced treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Worldwide Business

The conduct of trade, investment, and operational activities that transcend national borders, encompassing a global scope.

Culture, Leadership, and Organizations

This term refers to the study of how cultural norms and values, leadership styles, and organizational structures interact and influence each other.