(a) Distinguish each company and discuss the reason for your identification.

(b) Judge whether the following statement is true and explain your answer: If the managers focus on the current stock value, they will tend to overemphasize short-term profits at the expense of long-term profits.

Read the table below for 3 firms: a bubble tea store, a bike store, a consulting firm. COMPANY A B 0.2 0.3 0.5 4 60 Debt-equity ratio Inventory Turnover Current Ratio Net profit margin Receivables Turnover 1.8 0.9 1.28 3.8% 6.4% 20% 30.0 6.0