Which of the following statements regarding liquidity ratios is false? a. the purchase of a building for cash has no effect on liquidity. b. a high current ratio generally indicates the ability to pay current liabilities on a timely basis. c. as a rule of thumb, a current ratio of 1 or higher often reflects an acceptable level of liquidity. d. all of the other statements are true. e. providing services to customers for cash improves liquidity.

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.