Precautionary Motive Is a Reason for a Firm to Maintain

question 374

True/False

Precautionary motive is a reason for a firm to maintain liquidity.

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Definitions:

Transform Boundary

A type of plate boundary where two tectonic plates slide past each other horizontally, often associated with earthquakes.

Mantle

The layer of the Earth between the crust and the outer core, composed of silicate rocks that are rich in magnesium and iron.

Melting

The process of changing from a solid to a liquid state due to an increase in temperature and/or a decrease in pressure.

Island Arc

An island arc is a chain of islands formed from the volcanic activity associated with the subduction zones of tectonic plates, typically located in the ocean.