BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Minimum Capital
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Liquidity
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Maximum Capital
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(b) and (c)
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Detailed explanation-1: -Liquidity of assets helps accelerate transactions g liquid assets ‘reduces the time you need to spend on finding a buyer for the asset. Stocks are an excellent example of liquid assets that can be easily traded on the stock exchange on any working day.
Detailed explanation-2: -Liquidity is a company’s ability to convert assets to cash or acquire cash-through a loan or money in the bank-to pay its short-term obligations or liabilities.
Detailed explanation-3: -Short term Investment decision is the decision that is taken in financial management which affects the liquidity as well as the profitability of business. Was this answer helpful?
Detailed explanation-4: -A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.