The Ability of a Firm to Raise Sufficient Capital on Competitive

question 86

True/False

The ability of a firm to raise sufficient capital on competitive terms under adverse conditions in order to sustain steady operations is referred to as financial flexibility.

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Definitions:

Assets

Resources owned by a business that are expected to provide future economic benefits.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Internal Transactions

financial events that affect the internal accounting of an organization without involving another entity.

External Transactions

Financial activities involving an entity and another party outside the entity, such as sales, purchases, and financing agreements.