Operating and Financial Flexibility Refers to a Company's Ability to

question 8

Multiple Choice

Operating and financial flexibility refers to a company's ability to

• A)adjust to unexpected downturns in the economic environment in which it operates or to take advantage of profitable investment opportunities as they arise.
• B)generate sufficient cash flows to maintain its productive capacity and still meet interest and principal payments on long-term debt.
• C)readily convert assets to cash relative to how soon liabilities will have to paid in cash.
• D)increase sales.

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Definitions:

Cheating

The act of being dishonest or unfair in order to gain an advantage, especially in a learning environment or in competitive situations.

Distributive Tactics

Strategies used in negotiations where parties view the available outcomes as fixed, leading to a win-lose situation where one's gain is the other's loss.

Dirty Tricks

Unethical, deceptive, or unfair strategies employed to gain an advantage in a competition or negotiation.

Responding

The act of replying or reacting to something that has been said or done.