_____ Refers to the Ability of a Business to Survive

question 56

Multiple Choice

_____ refers to the ability of a business to survive adverse financial events.

• A) Liquidity
• B) Financial flexibility
• C) Financial strength
• D) Profitability

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Definitions:

UCC

An acronym for the Uniform Commercial Code, which regulates sales and commercial transactions in the United States to bring uniformity across state laws.

Goods

Tangible products or merchandise that are produced, bought, and sold in the course of business operations.

Incidental Damages

Compensation for additional unexpected expenses that arise directly from a breach of contract, beyond the direct loss or damage incurred.

Breach

The violation or breaking of a legal obligation or agreement, which can result in legal action against the party that fails to honor their part of the contract.