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current ratio (M2)<br />The ratio of CURRENT ASSETS to CURRENT LIABILITIES of a firm. Also known as a working capital ratio or 2:1 ratio following the rule of thumb that assets should be twice liabilities, unless the seasonal or speculative nature of the firm requires more working capitaL This is the principal measure of the LIQUIDITY of a firm.
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corporate morality (MO)<br />The maintenance of high ethical standards by businesses. This requires honesty in the accounting and other statements of corporate activity, high-quality safe products, participation in community programmes, care for the environment, an awareness of the long-term interests of the economy in its investment policy and prompt payment of taxation in order to contribute sufficiently to public expenditure.
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