Which of the Following Statements Concerning the Current Ratio Is

question 47

Multiple Choice

Which of the following statements concerning the current ratio is incorrect?

• A) The current ratio can be manipulated at balance date,e.g. by using cash to pay off short-term debt.
• B) A high current ratio may indicate excessive investment in working capital.
• C) A low current ratio may indicate difficulty in meeting short-term commitments.
• D) A current ratio of 1.5 to 1 should always be maintained.

Understand the impact of technology on the decline of mass media advertising.

Comprehend the limitations and applications of the BCG matrix in strategic planning.

Recognize the importance of product hierarchy in customer loyalty and product strategy.

Grasp the characteristics and strategic implications of different categories within the BCG matrix.

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Definitions:

Performance Perspectives

Various angles or aspects from which organizational performance is analyzed and measured, such as financial, customer, operational, and learning and growth perspectives.

Internal Processes

Systems, procedures, and workflows within an organization designed to support its operations, improve efficiency, and meet business objectives.

Performance Perspectives

Performance perspectives are various views and analyses of an organization's performance metrics to assess and improve its efficiency, effectiveness, and overall success.

Learning and Growth

A component of the Balanced Scorecard that focuses on the internal capabilities and development needed to support strategy implementation and innovation.