Financial Flexibility Is Generally Defined as

question 27

Multiple Choice

Financial flexibility is generally defined as

• A)the ability of a company to adapt to unexpected needs and opportunities
• B)the uncertainty or unpredictability of the future results of a company
• C)a measure of overall company performance
• D)a company's ability to maintain a given level of operations

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Definitions:

Industry

The economic activity concerned with the production of goods, services, and the extraction of raw materials.

Requirements Contract

An agreement in which one party agrees to purchase all of his or her requirements of a particular product from another party. See also output contract.

Output Contract

An agreement in which a seller agrees to sell “all the goods we manufacture” or “all the crops we produce” to a particular buyer. See also requirements contract.

Valid Contract

A contract that is legally binding and fully enforceable by the court.