Question

A company with a _________________ is better able to survive bad times, to recover from unexpected setbacks, and to take advantage of profitable and unexpected investment opportunities.

Answer 1

Answer:

A high degree of financial flexibility.

Explanation:

A company with a high degree of financial flexibility is better able to survive bad times, to recover from unexpected setbacks, and to take advantage of profitable and unexpected investment opportunities. Financial flexibility is purely an accounting term which is referred as an organization's capability to react to unforeseen circumstances and unexpected expenses. It is assessed by evaluating the organization's use of leverage and cash holdings. It is the capacity of an organization in reacting and adapting to changing financial circumstances.