a low current ratio in business indicates that the business is
- long term loan repayment problem
- efficient in the utilization of its resources
-
unable to pay its bills on time
- growing its net assets effectively
The correct answer is: C
Explanation
A low current ratio indicates problems in working capital management. All other things being equal, creditors consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which are due over the next 12 months.