Which of the Following Is Most Likely to Occur If

question 19

Multiple Choice

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

• A)The firm's liquidity will be lower than it should be.
• B)The current ratio will be lower than it should be.
• C)The return on investment will be lower than it should be.
• D)The interest coverage ratio will be lower than it should be.

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Definitions:

Influence Impression

The impact or effect an individual's behavior, opinions, or actions have on others' perceptions, decisions, or actions, especially in contexts such as social media or marketing.

The Two-Step Flow Model

A communication theory suggesting that information from the media moves to opinion leaders and then to a wider audience.

Influencers

People who can influence others' buying choices due to their expertise, status, authority, or personal connection with their audience.

Dissemination

The process of spreading information, knowledge, or ideas to a wide audience.