Which of the following will probably not be a result if a company's liquidity is poor?
A)Workers will quit if they are not paid on time.
B)Debt and/or equity will exceed the company's maximum allowed amount.
C)Banks may not loan the company funds.
D)Customers will seek other sources of goods when the company's product is not available.

Question

Quizplus · Accepted Answer

If a company's liquidity is poor, it means the company has difficulty in meeting its short-term financial obligations. This may lead to a delay in paying workers, inability to secure loans from banks, and unavailability of the company's product. However, exceeding the maximum allowed debt and/or equity is not directly related to poor liquidity but rather a breach of financial regulations or company policies.

Which of the Following Will Probably Not Be a Result