Which of the Following Should Be True for an Asset

question 82

Multiple Choice

Which of the following should be true for an asset to be considered liquid?

• A) It pays regular dividends.
• B) It can be bought and sold at an organized stock market or bourse.
• C) It is offered for sale on both primary and secondary markets.
• D) It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.

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Definitions:

Net Operating Income

The earnings a business retains after subtracting operational costs, prior to the deduction of interest and taxes.

Total Contribution Margin

The difference between a company's sales revenue and variable costs, representing the amount available to cover fixed costs and contribute to profit.

Net Operating Income

A measure of a company's profitability excluding interest and tax expenses.

Operating Income

This is the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.