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Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership. The reason for this is because a new buyer will not be personally liable for any wrongdoings on the part of the previous owners. If someone buys a sole proprietorship, for example, the new owner can be held personally liable for any mistakes or illegalities on the part of the prior owner…even if the new owner had NOTHING to do with the situation! This is usually NOT the case with a corporation.
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What is an advantage of a short term loan?
less risk for the lender (liquidity) -> less collateral and information required.
What is the advantage of liquidity premium theory?
The liquidity premium theory offers the advantage of explaining why investors demand higher yields on longer-term securities compared to shorter-term ones. This premium compensates investors for the added risks associated with lower liquidity in long-term assets, such as the potential difficulty in selling them quickly or at a fair price. By incorporating liquidity concerns into interest rate models, the theory provides a more comprehensive understanding of the term structure of interest rates, capturing the nuances of investor behavior and market conditions.
Is it true that One advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk?
true
Is Liquidity a major advantage to regular savings accounts?
do Short-term goals include things such as home ownership, education of children, and retirement
Why might a profitable business face liquidity problems?
No liquidity
What is liquidity in financial system?
Liquidity is basically how much cash is available.
How can a company improve its liquidity position?
How can the liquidity position of a company be improved
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
What is the ability to be used as or directly converted to cash called?
Liquidity
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
What is a liquidity order?
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
Shortage of liquidity in money market?
is the drain of excess liquidity from the money market
