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.
Learn more about liquidity here
brainly.com/question/13781625
#SPJ4
Answer:
Explained below:
Explanation:
The basic similarity between TQM and Six Sigma quality-management techniques is that each one is a quality control approach and the basic difference between Six Sigma and TQM is the method that each one addresses quality check.TQM determines quality up to that level to which a product attends standards designed inside the company while Six Sigma trades the representation of quality to a relational one, maintaining that quality is based on the fewer number of lacks, which is necessary to be eliminated as much as attainable.
