_____ is an indicator of the business's ability to manage cash flows so that the company has the fiscal ability to respond appropriately if an unexpected opportunity or problem arises.
A) Liquidity
B) Financial flexibility
C) Absorbability
D) Equitability

Question

Quizplus · Accepted Answer

Financial flexibility is the ability of a business to manage its cash flows effectively to enable it to respond to unforeseen events or opportunities. This capability is necessary for a company to remain competitive and to survive in the long term. It allows a business to take advantage of new opportunities or to respond to unexpected problems without compromising its financial stability.

_____ Is an Indicator of the Business's Ability to Manage