Choose the Correct Definition for Financial Stability

question 12

Multiple Choice

Choose the correct definition for financial stability.

• A)The ability to produce cash from the business to meet current obligations
• B)The ability to meet long-term obligations as they fall due for payment
• C)The ability of the business to continue to operate profitably
• D)The ability of the business to borrow further funds if needed

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Definitions:

Negative Emotions

Feelings that are generally considered unpleasant or undesirable, like sadness, anger, fear, or jealousy, which may influence behavior and decision-making.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses, encompassing processes such as memory, judgment, and problem-solving.

Sympathetic Nervous System

A branch of the autonomic nervous system responsible for the body’s fight or flight response, regulating involuntary actions like heart rate and blood flow in reaction to stress.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for rest and digestion, conserving energy, and lowering heart rate.