As a general rule an entrepreneur should maintain a current ratio of _____ or have a good reason for not doing so.
A) 1
B) 2
C) 3
D) 4

Question

Quizplus · Accepted Answer

A current ratio of 2 (or 2:1) is generally considered a solid benchmark for most industries. It indicates that the business has enough current assets to cover its current liabilities, giving it a strong buffer against short-term financial difficulties. However, there may be some cases where a current ratio of 1 or slightly below may be acceptable, depending on the industry and specific circumstances of the business. It's important for entrepreneurs to understand their industry standards and have a solid grasp on their financial situation at all times.

As a General Rule an Entrepreneur Should Maintain a Current