A Strong Liquidity Position Means That

question 127

Multiple Choice

A strong liquidity position means that

• A) the firm is able to meet its short-term obligations.
• B) the firm uses little debt in its capital structure.
• C) the firm pays out a large portion of its net income in the form of dividends.
• D) the firm pays its creditors on time.

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Definitions:

Simplify

To reduce an expression or equation to its simplest form by performing all possible operations and combining like terms.

Shaded Portion

The part of a diagram or graph that is marked with a pattern or color to indicate it is different from the rest, often related to probability, geometry, or statistics.

Total Area

The entire surface area of a two-dimensional shape or the combined surface areas of all faces of a three-dimensional object.

Ratio

The quantitative relation between two amounts, showing the number of times one value is contained within the other.