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Question
which of the following indicates how long a business can operate before it must generate new revenue? current ratio runway inflation rate
Brief Explanations
- Current ratio measures a company's ability to pay short - term obligations (current assets/current liabilities), not the time to generate new revenue.
- Runway in business terms refers to the length of time a business can operate with its available funds before it needs to generate new revenue.
- Inflation rate is about the rate of increase in prices of goods and services, not related to a business's operational time before new revenue generation.
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B. runway