Which of the Following Is the Term Used to Describe

question 65

Multiple Choice

Which of the following is the term used to describe a failing bank selling off a substantial amount of assets in a short time period in order to remain solvent?

• A)fire sale 
• B)short sale 
• C)long sale 
• D)liquidity sale

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Definitions:

Equipment Purchase

The act of acquiring capital equipment for business use, often involving a significant investment.

Variable Cost

Costs that vary directly with the level of production or volume of sales.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.