Which is most important to evaluate when considering extending credit to a small business and why? O The increase in the liabilities over the last two years because this may indicate there are unpaid bills. O The rate of revenue growth because this demonstrates that the management of the business is effective. O The relationship of current assets to current liabilities which represents a company's ability to meet short-term debt obligations when due. The balance in the company's cash account because this represents the wealth of the business.
Which is most important to evaluate when considering extending credit to a small business and why? O The increase in the liabilities over the last two years because this may indicate there are unpaid bills. O The rate of revenue growth because this demonstrates that the management of the business is effective. O The relationship of current assets to current liabilities which represents a company's ability to meet short-term debt obligations when due. The balance in the company's cash account because this represents the wealth of the business.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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am. 109.
Transcribed Image Text:Which is most important to evaluate when considering extending credit to a small business and why? O The increase in the liabilities over the last two years because this may
indicate there are unpaid bills. O The rate of revenue growth because this demonstrates that the management of the business is effective. O The relationship of current assets to
current liabilities which represents a company's ability to meet short-term debt obligations when due. The balance in the company's cash account because this represents the
wealth of the business.
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