Creating Supplies of Excess Resources in Case of Unpredictable Needs

question 122

Multiple Choice

Creating supplies of excess resources in case of unpredictable needs is known as

• A)cooptation.
• B)smoothing.
• C)flexible processing.
• D)empowering.
• E)buffering.

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Definitions:

Liquidated

The process of converting assets into cash or cash equivalents by selling them on the open market.

Personal Assets

Assets owned by an individual, including both tangible items like real estate and cars, and intangible items like investments and patents.

Income and Loss Sharing

A method often used in partnership agreements where profits and losses are distributed among partners according to pre-agreed proportions.

Creditors' Claims

Rights of lenders to claim assets of a debtor in case of default.