Financial flexibility is
A)a good indicator of a company's ability to grow through operations.
B)evident when a company's assets are greater than its liabilities.
C)the ability to convert existing assets into money.
D)the ability to generate cash from sources other than regular operations.

Question

Quizplus · Accepted Answer

Financial flexibility refers to a company's ability to generate cash from sources other than regular operations, such as selling assets or borrowing money. A company with strong financial flexibility is better equipped to handle unexpected expenses or pursue growth opportunities. Therefore, option D is the correct answer.

Financial Flexibility Is