Which of the Following Characteristics Apply to Liquid Assets

question 7

Multiple Choice

Which of the following characteristics apply to liquid assets?

• A)They are characterized by low returns.
• B)They involve low risk.
• C)The temptation to spend is greater.
• D)All of the above are correct.

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Definitions:

Obtain Capital

The act of securing funds or resources to finance business operations, typically through borrowing, equity investment, or earnings.

Limited Liability

A legal structure that limits the financial responsibility of owners or shareholders to the amount they invested in the business, protecting personal assets from company debts and liabilities.

Share Transferability

The ease with which shares of a company can be bought, sold, or transferred among individuals or entities.

Taxation

An area of public accounting involving tax advice, tax planning, preparing tax returns, and representing clients before governmental agencies.