________ Is the Name of the Most Common Liquidity Ratio

question 115

Multiple Choice

________ is the name of the most common liquidity ratio, current assets to current liabilities.

• A) Debt-equity ratio
• B) Current ratio
• C) Profit and loss ratio
• D) Return on investment ratio
• E) Stockholders' equity ratio

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Definitions:

Exculpatory Clause

A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Liability Release

a legal document where one party agrees not to hold another party liable for risk, damage, or loss.

Green Hair

A hair color that has been dyed various shades of green or hair that has turned green due to exposure to chlorine or certain chemicals.

Legal Capacity

The ability of a person to understand the nature and effects of their actions under the law, thus being able to enter into a binding contract.