A. long term loan repayment problem
B. efficient in the utilization of its resources
C. unable to pay its bills on time
D. growing its net assets effectively
Correct Answer: Option C
C. unable to pay its bills on time
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.
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