Liquidity Is the Same as

question 153

Multiple Choice

Liquidity is the same as

• A) easy conversion of money to an asset, allowing for loss of value.
• B) diversification of an investor's store of value.
• C) easy conversion of an asset to a means of payment, allowing for loss of value.
• D) easy conversion of an asset to a means of payment, with little or no loss of value.

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Definitions:

Ultra Vires Rule

A legal doctrine that acts performed beyond the scope of a corporation's or entity's powers are invalid.

Business Judgment Rule

A legal principle that protects the decisions made by a corporation's board of directors from being challenged in court, provided they were made in good faith and with reasonable care.

Oppression

The exercise of authority or power in a burdensome, cruel, or unjust manner.

Novation

is the process of substituting a new obligation or contract for an old one, with consent from all parties involved.