__________ Measures Ability to Meet Short-Term Obligations

question 52

Multiple Choice

__________ measures ability to meet short-term obligations.

• A) Liquidity
• B) Leverage
• C) Asset management
• D) Profitability

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Definitions:

Personal Assets

Assets owned by an individual as opposed to assets owned by businesses or corporations, including properties, account balances, and personal belongings.

Unlimited Liability

A legal structure in which the business owner's personal assets can be used to satisfy the business debts and liabilities.

Mutual Agency

A principle of partnership where each partner has the authority to bind the partnership in contractual agreements.

Ease of Formation

Refers to the simplicity and straightforwardness involved in establishing a new business or organization.