Which of the Following Best Describes Lack of Commitment

question 36

Multiple Choice

Which of the following best describes lack of commitment?

• A) not having enough funding to maintain operations while still building the business and gaining access to customers and markets
• B) not having sufficient know-how to run a business in the chosen market or geographical area
• C) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production
• D) falling prey to the temptations of fraud, deception, and embezzlement
• E) not devoting enough time to the requirements of running a competitive business

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Definitions:

Interval Measure

The interval measure is a liquidity metric that estimates how long a company can operate using its current liquid assets without needing additional financing.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as (current assets - inventories) / current liabilities.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Current Ratio

A measure of how well a company can satisfy its short-term due debts, revealing its liquidity over the year.