An Automobile Is an Asset, but It Is Not Liquid

question 55

Multiple Choice

An automobile is an asset, but it is not liquid because:

• A) the transactions costs for turning it into money are high.
• B) the owner may still be making payments on the loan.
• C) the automobile may not be in good repair.
• D) the automobile cannot be sold without a loss in value.

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Definitions:

Cost Savings

The reduction in expenses achieved through efficiency improvements, negotiation, or eliminating wasteful practices.

Productivity Measurement

The process of determining the efficiency of production of goods or services, typically by comparing input resources to output.

Evaluation System

A structured approach to assess the performance and effectiveness of employees, projects, or processes.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to be accomplished.