What Two Measures Tell Management and Short-Term Creditors If the Firm

question 94

Multiple Choice

What two measures tell management and short-term creditors if the firm has sufficient capital and can pay its debts?

• A) Working Capital Ratio
• B) Current Ratio
• C) Organizational Ratio
• D) A & B

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Definitions:

Independent Roles

Positions or functions in a group or organization where individuals work autonomously, with minimal dependence on others for the completion of tasks.

Functional Team

A group of individuals with specific roles and expertise, working together towards a common business task or objective, typically within the same department or functional area.

Determinant

An element or factor that decisively affects the nature or outcome of something, often used in the context of identifying causal factors in various fields of study.

Trust and Cooperation

The relationship between individuals or groups characterized by mutual confidence and teamwork towards common goals.