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3 years ago

What is meant by liquidity?

Business

1 answer:

BartSMP [9]3 years ago

3 0

Answer:

Liquidity is the term which is stated as the degree to which the asset or the security of the company which can be quickly sold or bought in the market at the price which states its intrinsic value.

In general term, it is defined as ease of converting the asset or security into cash.

Explanation:

The most liquid asset is cash as it is universally accepted and considered to be the standard for liquidity because it is quickly and easily be convertible into other assets., while the other tangible assets like collectibles, real estate are all relatively illiquid.

Liquidity is of different types:

1. Market liquidity - Which refers to the extent of market like stock market, real estate market.

2. Accounting liquidity - It evaluates the ease with which the company or individual could meet or fulfill the financial obligations with the liquid assets which are available to them.

The accounting liquidity is measured with following ratios - Cash ratio, Quick ratio and Current ratio.

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Answer:

D. Network

Explanation:

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In the given case, the company has contracts with staffing agencies to fill non core positions from accountants to dishwashers, which is an example of network structure.

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3 years ago

In the basic keynesian model, a decline in autonomous spending:

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3 years ago

Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts that have become obsole

MaRussiya [10]

Explanation:

There are two alternatives

1. Sold for $6,300

The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500

2. Repair and after that sale it

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= $10,600

As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company

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3 years ago

How does the availability of resources affect supply, especially in catering business?

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4 years ago

John’s bank statement shows a closing balance for a given month as $2,200 and his personal account register shows a closing bala

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3 years ago

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