A vendor selling a large dollar amount of goods to a hospital on credit would:

The reasoning behind the correct choice lies in the interpretation of financial ratios and their implications for a vendor considering extending credit to a hospital. A vendor selling a large dollar amount of goods on credit would indeed be somewhat concerned if the current ratio is less than one.

A current ratio measures a company's ability to pay its short-term liabilities with its short-term assets; a ratio of less than one suggests that the hospital does not have enough current assets to cover its current liabilities. This situation indicates potential liquidity issues, which could jeopardize the hospital's ability to fulfill its obligations to the vendor in a timely manner. Creditors typically prefer to see a current ratio greater than one, as it signifies that the organization is more likely to meet its short-term financial commitments.

In assessing risk, the vendor would be cautious because a hospital that struggles to meet its current obligations could be a risky customer for significant credit sales. Thus, understanding the current ratio is critical in evaluating whether to extend credit in substantial amounts.