A Firm with Highly Liquid Assets Plus Unused Debt Capacity

question 64

Multiple Choice

A firm with highly liquid assets plus unused debt capacity is said to have ____.

• A) arbitrage structural capacity
• B) the optimal capital structure
• C) financial slack
• D) optimal financial structure

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Definitions:

Identifiable Factors

Elements or conditions that can be recognized and potentially measured, which influence outcomes or results in various situations.

Competitive Advantage

The attributes or conditions that allow a company or country to produce goods or services more efficiently or at a higher quality than its competitors, leading to better sales or margins.

Human Resource Management

The strategic approach to the effective management of people in an organization, focusing on policies and systems to maximize employee performance.

New Products

Goods or services that have been recently developed or introduced to the market, offering new features, benefits, or innovations.