Question

which of the following is true about fictitious business corporation? it has exactly $1 in current assets for every $1 in current liabilities. it has more dollars in current assets than it has to cover in current liabilities. it has fewer dollars in current assets than it has in current liabilities.

Explanation:

In business (specifically in financial analysis related to a corporation), a "Fictitious Business Corporation" (assuming standard corporate financial principles apply) typically aims to have sufficient current assets to cover current liabilities and ideally more (for financial health, operational flexibility, etc.). The first option implies a 1:1 ratio which is less common for healthy operations, and the third option (fewer assets than liabilities) would indicate financial distress (like insolvency risk in short - term), so the second option aligns with typical corporate financial management goals.

Answer:

It has more dollars in current assets than it has to cover in current liabilities.