One Difference Between Financial and Non-Financial Liabilities Is That

question 35

Multiple Choice

One difference between financial and non-financial liabilities is that

• A)financial liabilities result from a direct monetary contribution of the investors, but non-financial claimants have typically made a non-monetary contribution to the firm.
• B)financial liabilities have a mandated regular payment schedule, but non-financial liabilities have no set schedule.
• C)the holders of a firm's financial liabilities can force a firm into bankruptcy for non-payment while the holders of non-financial liabilities cannot.
• D)All of the above are differences between financial and non-financial liabilities.

---

Definitions:

Inspirational Strategy

A plan of action intended to motivate and guide towards achieving a goal or vision.

Coercive

Involving or using force or threats to compel someone to do something.

Friendly Communication

Interactions that are characterized by a warm, pleasant, and supportive tone.

Hardball Negotiations

Bargaining or negotiation tactics that are aggressive, uncompromising, and often pressuring the other side to give in.