Asked by
Marlone Nandjeu
on Nov 08, 2024
Verified
The ease and speed with which an asset can be converted into cash is called:
A) Liquidity.
B) Marketability.
C) Convertibility.
D) Transferability.
E) Liability.
Liquidity
How effortlessly an asset can be liquidated without majorly altering its market price.
Marketability
The ease with which a security or asset can be converted into cash without significantly affecting its price.
- Understand the principles of liquidity and how it impacts a firm's financial flexibility.
Verified Answer
AM
Learning Objectives
- Understand the principles of liquidity and how it impacts a firm's financial flexibility.