What Are Liquidity Ratios and How Are They Used by the Small

question 73

Essay

What are liquidity ratios and how are they used by the small business owner? Name and briefly explain the current and quick ratios.

---

Definitions:

Administrative Dispute Resolution Act

U.S. legislation that promotes the use of alternative dispute resolution processes, such as arbitration and mediation, in the administrative process of federal agencies.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more arbitrators by whose decision (the "award") they agree to be bound.

Formal Rulemaking

A regulatory process that includes a period for public comment and often a public hearing before a final rule is made by a governmental body.

Informal Rulemaking

A regulatory process by government agencies involving less formal procedures than those required for formal rulemaking, often including notices and comment periods.