A Measure of a Company's Financial Flexibility Is the

question 58

Multiple Choice

A measure of a company's financial flexibility is the

• A) cash debt coverage.
• B) current cash debt coverage.
• C) free cash flow.
• D) cash debt coverage and free cash flow.

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Definitions:

Resource Allocation

The process of distributing available resources among various competing needs and wants.

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Circular Flow

A model in economics that illustrates how money moves through an economy between producers and consumers, highlighting the interdependencies of different economic sectors.

Public Ownership

Ownership of assets by the government or public entities, as opposed to private individuals or companies.