Accounts Receivable and Inventory Are Some of the Most Liquid

question 112

Essay

Accounts receivable and inventory are some of the most liquid assets a firm owns and its market value is typically fairly close to book value.Even so,in the eyes of many lenders,these assets make for inadequate collateral on loans,particularly if the business looking to borrow the money is in a liquidity crisis.Why do you think this is the case?

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Definitions:

Group Development

Group development refers to the stages through which a team or group progresses as they improve in collaboration, decision-making, and goal attainment, often including forming, storming, norming, performing, and adjourning phases.

Conflict

refers to a situation in which individuals or groups have opposing interests, beliefs, or needs, leading to a clash.

Punctuated Equilibrium

A theory suggesting that evolutionary development occurs through long periods of stability interrupted by short, significant changes.

Deadlines

Specified times or dates by which tasks or projects are required to be completed.