Answer:
the acid-test ratio is 1.5 times
Explanation:
The computation of the acid-test ratio is as follows:
Acid test Ratio = Quick assets ÷ current liabilities
where,
Quick Assets is
= Cash + short tern investments + Account receivable
= $3,500 + $50,000 + $56,000
= $109,500
And, the current liabilities is $73,000
So, the acid-test ratio is
= $109,500 ÷ $73,000
= 1.5 times
Hence, the acid-test ratio is 1.5 times
This is an example of Tying rewards and incentives directly to the achievement of strategic and financial targets.
By doing this, general Electric aimed to create an objective measurement for all of its emloyees that motivate them to keep increasing their performance if they hope to stay as an employee in that company. Through this method, Jack Welch managed to increase the company's value for around 4000% during 20 years of his reign.
Merging and milking brands are examples of creating brand extensions.
Brand extension refers to the process in which a firm markets a new product by using its established brand names. It is a way to take advantage of the company’s already established brand equity to increase the market and reach of the new product.
The assumption is that consumer loyalty, familiarity, brand popularity and reputation of the producer will ensure that the product is readily integrated into the market. Product extension can further help in expanding the reach of the product to new markets and consumer base, and increase overall profit margins as a result.
To learn more about brand extensions: brainly.com/question/13949619
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