Which of the Following Statements Regarding Liquidity and Profitability Is

question 123

Multiple Choice

Which of the following statements regarding liquidity and profitability is not true?

• A)If a business is unable to pay its debts as they come due,it is operating unprofitably.
• B)A business may be liquid,yet operate unprofitably for several years.
• C)A business may operate profitably,yet be unable to meet its obligations.
• D)In order to survive in the long run,a business must both remain liquid and operate profitably.

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Definitions:

Critical Thinking Skills

The ability to engage in reflective and independent thinking to logically question ideas and assumptions rather than accepting them at face value.

Positive Disposition

A tendency to maintain a hopeful and optimistic attitude, often leading to positive outcomes.

Micromanager

A manager or supervisor who excessively controls or oversees the work of their subordinates, often in a detailed and invasive manner.

Ethical Person

An individual who consistently exhibits behaviors and decisions guided by a set of moral principles, values, and standards.