To know whether Ability Inc. has the resources available to meet its short-term cash needs, a potential investor in the company would be interested. A liquidity analysis is one of these types of analyses.
The term "liquidity" describes the effectiveness or simplicity with which a security or asset can be converted into immediate cash without impacting its market price. Cash itself is the most movable asset.
In other words, liquidity refers to how easily an item may be purchased or sold on the market at a price that reflects its true worth. Due to its ease and speed of conversion into other assets, cash is regarded as the asset with the highest level of liquidity. Real estate, fine art, and collectibles are a few examples of tangible assets that have a low liquidity level. Various points on the liquidity spectrum are occupied by other financial assets, which range from shares to partnership units.
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Answer:
$12,380
Explanation:
The beginning inventory is $9,150
The budgeted ending inventory is $10,420
The cost of goods sold is $11110
Therefore the budgeted purchases can be calculated as follows
= $10,420 + $11,110-$9,150
= $21,530 - $9,150
= $12,380
Hence the budgeted purchases is $12,380
A supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.
<h3>What is a supply chain?</h3>
A Supply chain is the entire system of production. It starts from sourcing for raw materials to delivering a product or service to an individual also known as a customer.
Therefore, a supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.
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Answer:
Franchising
Explanation:
Franchising is defined as the contract that exists between a parent company (franchisor) and other firms (franchisee) in which an operating licence is given to the franchisee.
The franchisor gives access to use of their brand and also provides support and training to the franchisee.
Franchisee in turn gives an agreed amount of profit to the franchisor for using their brand.
An established name and specific rules of operation is agreed upon in the contract.
Answer:
False
Explanation:
Although the first part of the statement correctly describes the law of supply as an inverse relationship between the price of good/service and the quantity suppliers would supply (given a particular price), the second part is false.
Height of the supply curve indicates a minimum price that would incentivize suppliers to start creating a particular good. The notion of customers and purchase is related to the demand curve, not supply.
