Business Level 3 Unit 1 M1

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This means that for every £1 of current liabilities, the business has £1.39 of current assets available. Ideally, the answer should be between 1.5 and 2. A figure less than 1.5 indicates that the business may experience difficulties in meeting its short-term debts (i.e. a liquidity crisis). An answer of more than 2 indicates that the business may be holding cash in an unproductive and unprofitable form, and it may be better used

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