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As the quick ratio includes cash but no inventory, there will be a change in the numerator on account of decrease in cash (which is a current asset). Denominator will remain unchanged. So overall, quick ratio will decrease after this change. For example: if quick ratio is 1.2, and if current assets are 1200 and current liabilities are 1000 (1200/1000 =1.2). if we purchase inventory (let’s say for Rs 100), then it will not make a difference in quick assets which exclude inventory. But they include cash, then there will be a reduction in quick assets. Quick assets then will become: 1200 -100 = 1100. There is no change in a liability here. So new quick ratio will become: 1100/1000 = 1.1. So, clearly answer will be (a). There is a reduction in a numerator and result is a lesser quick ratio as compared to the previous one.
For decision making to exist, there needs to be at least ______ alternative(s) available.
Which of the following decisions cannot be delegated?
Which of the following is not a disadvantage of group decision making?
What type of bias relies too heavily on one piece of information in making a final decision?
How can involving a diverse group in the evaluation process enhance the selection of the best solution?
Which type of decision is made in a situation that is new, complex, and has no established guidelines?
Why is it essential to consider the urgency of the problem when identifying it?
Rational decision making is a multi-step process starting with defining the problem. What is the next step in this process?
_________ is a branched flowchart showing multiple pathways for potential decisions and outcomes.
What criterion is essential when selecting the best solution in decision-making?