Saturday, October 10, 2020

A company's lower ratio of cash to noncash assets most likely represents which characteristic of management?

A company's lower ratio of cash to noncash assets most likely represents which characteristic of management?


A) Greater willingness to take risk.

B) Lower ability to find profitable investment projects.

C) Greater caution to ensure funds are available to pay debt as it becomes due.

D) Greater willingness to be compensated with company stock than cash.


Answer: Greater willingness to take risk.

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