The ability to meet short-term obligations and to efficiently generate revenues is called:
A) Liquidity and efficiency.
B) Solvency.
C) Profitability.
D) Market prospects.
E) Creditworthiness.

Question

Quizplus · Accepted Answer

Liquidity refers to a company's ability to meet its short-term obligations such as paying bills and employees. Efficiency, on the other hand, refers to a company's ability to generate revenue using the least amount of resources. Both these factors are important for a company's financial health and sustainability.

The Ability to Meet Short-Term Obligations and to Efficiently Generate