Which of the Following Is Most Likely to Occur If

question 10

Multiple Choice

Which of the following is most likely to occur if a firm over-invests in net working capital?

• A) The current ratio will be lower than it should be.
• B) The quick ratio will be lower than it should be.
• C) The return on investment will be lower than it should be.
• D) The times interest earned ratio will be lower than it should be.

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Definitions:

Locus of Causality

A concept in psychology that refers to the perceived source of control over events in one's life, whether internal or external.

Connectionist Models

Cognitive models based on neural networks that simulate how neural connections in the brain process information and learn.

Neural Networks

Computational models designed to simulate the way the human brain processes information, often used in artificial intelligence applications.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, influencing the likelihood of that behavior being repeated.