Your Authors Identify Four Constraints on Repositioning Funds

question 20

Essay

Your authors identify four constraints on repositioning funds.Identify and describe three of these constraints.

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Definitions:

Cash

Liquid currency and readily accessible funds available in checking and savings accounts, often used to meet short-term financial obligations.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a normal operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year and are listed on a company's balance sheet.