Financial Flexibility Measures the Ability of an Enterprise to Take

question 107

True/False

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

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Definitions:

Salience

The quality of being particularly noticeable or important; prominence.

Demand

The desire and ability of consumers to purchase goods and services at a given price.

Elastic

Describes a situation in economics where the demand for or supply of a good is sensitive to changes in price, meaning a small change in price leads to a significant change in quantity demanded or supplied.

Inelastic

A characteristic of goods whose demand does not change significantly when the price of the good changes.