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:

Compound-Complex Sentence

A sentence that combines at least one dependent clause with two or more independent clauses.

Independent Clause

A group of words that contains a subject and a verb and expresses a complete thought, functioning as a sentence or part of a sentence.

Subordinate Thoughts

Ideas or considerations that are considered less important or secondary to a main line of thinking.

Complex Sentence

A sentence that contains one independent clause and at least one dependent clause.