High Levels of Liquidity Are Most Apt to Indicate

question 111

Multiple Choice

High levels of liquidity are most apt to indicate:

• A) low levels of net working capital.
• B) low profit margins.
• C) high levels of economic value added.
• D)inefficient use of assets.

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Definitions:

Bullwhip Effect

The Bullwhip Effect describes the phenomenon where variability in consumer demand causes progressively larger fluctuations in demand experienced by upstream suppliers in a supply chain.

Efficient Frontier

In finance, a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Responsiveness

The ability of an organization or system to quickly react to changes or needs within its environment or among its stakeholders.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.