Quick assets (cash, short-term investments, and current receivables) divided by current liabilities is the:
A. Working capital ratio.
B. Current ratio.
C. Current liability turnover ratio.
D. Quick asset turnover ratio.
E. Acid-test ratio.
Answer: E
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In recent years, there has been a great deal of concern about companies, called patent ________, who purchase patent rights without the intent of directly using them. Instead, these patent-holding firms demand licensing fees from companies who knowingly or unknowingly infringe upon their patent rights.
A. hawks B. squatters C. confiscators D. trolls
Which of the following is not an internal control activity for cash?
A) The amount of cash on hand should be kept to a minimum. B) Banking facilities should be used as much as possible. C) Employees who have access to cash should be bonded. D) All payments should be made with currency, not checks.
What lesson is the text trying to impart when relating the 2015 experience of the company British Petroleum?
a. The up-front investments in sustainability can be costly. b. Long-term investment in sustainability brings higher profits. c. Shareholders tend to abandon companies that aren’t sustainable. d. Failure to invest in environmental responsibility can be very damaging to a company.
Several prominent owners of a uranium mining company pass away within a period of two years. However, the company continues to operate as it remains financially viable and a majority of its stockholders wish for the continuation of the business. In this scenario, the uranium mining company is an example of a _____.
A. sole trader B. limited partnership company C. general partnership company D. C corporation