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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.

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Grayce Weimann

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3y ago

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Related Questions

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.


Why is profitability more important than liquidity?

If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.


Is profitability more important than liquidity?

If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.


Why is liquidity important to the financial manager?

how does market liquidity, competitiveness, and efficiency impact financial managers in regards to telecommunications AT&T and Verizon Wireless


The relationship between current assets and current liabilities is important in evaluating a company's?

Liquidity


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


What is principle of liquidity?

Liquidity is a term used to signify how easily an asset or an investment can be converted into cash. Obviously cash is the most liquid investment or asset. Real Estate could be the least liquid because finding a prospective buyer for a home will take a long time. Liquidity is an important consideration while taking investment decisions.


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).