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How can a firm better utilize/manage assets and liabilities?

How can a firm better utilize and manage its assets and liabilities?

Solution Preview

If we agree that assets are economic resources of a company, then assets represent economic value which can be put to work to earn profits. Liabilities represent claims against the assets.

In the macro environment, companies should

1. use ratio analysis to test the profitability and leverage of the assets for weakness,
2. compare themselves to similar companies in the industry for differences or ...

Solution Summary

The solution presents a listing of 8 types of actions that can be performed to better utilitze and manage assets and liabilities.