Investigating Liquidity Is Important Because

question 39

Multiple Choice

Investigating liquidity is important because

• A)If a company cannot pay its bills on time,it will have difficulty obtaining resources needed to continue operating.
• B)A company needs the ability to take advantage of opportunities as they arise.
• C)Both if a company cannot pay its bills on time,it will have difficulty obtaining resources needed to continue operating and a company needs the ability to take advantage of opportunities as they arise.
• D)Neither if a company cannot pay its bills on time,it will have difficulty obtaining resources needed to continue operating nor a company needs the ability to take advantage of opport

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Definitions:

Total Revenue

The overall amount of money earned by a business for its products or services before any costs or expenses are subtracted.

Marginal Cost

The increase in total cost that arises from producing an additional unit of output, crucial for decision-making in production.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing to supply at different prices in the short term, when at least one input is fixed.

Business Owner

An individual or entity that possesses and oversees the operations of a company or enterprise, ensuring its functionality and aiming for its success.