________ is one indication that a small business may be undercapitalized
A) A current ratio below 1:1
B) A quick ratio above 2:1
C) A debt-to-net worth ratio above 1:1
D) A net sales-to-working capital ratio equal to 3:1
C
Business
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A company is technically insolvent when
A) earnings before interest payments are less than the interest payments. B) it lacks the necessary liquidity to promptly pay its current debt obligations. C) current ratio is less than 1.0. D) cash outflows in a given period are greater than cash inflows.
Business
Once the call premium is recouped, the profit from a call is only limited by the price increases of the underlying stock prior to the contract expiration
Indicate whether the statement is true or false.
Business