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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:

Centre-of-Gravity Method

A logistical technique used to find the most cost-effective location for a facility based on minimizing transportation costs, considering the locations of suppliers, production facilities, and markets.

Goods Shipped

Refers to products or merchandise that have been packaged and dispatched to a destination.

Location of Markets

Refers to the geographical position of the consumer base or where the demand for products and services exists.

Location Decision

Deciding on the most optimal geographical site for a business's operations, facilities, or stores based on factors like cost, accessibility, and market demand.

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