Explore BrainMass

Explore BrainMass

    Liquidity position of the enterprise

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why are suppliers of credit interested in the liquidity position of the enterprise?
    Why is it beneficial for a small business enterprise also to make use of borrowed capital to finance the capital requirements of the enterprise?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf
    https://brainmass.com/business/finance/liquidity-position-enterprise-17548

    Solution Preview

    Liquidity (ratios) represent a firms ability to to meet short term debt obligations. The most common measure is the current ratio = (current assets)/(current liabilities). Credit is a current liability. The current assets which ...

    Solution Summary

    The liquidity position of the enterprise is found. The beneficial small business enterprises that make use of borrowed capital to finance the capital requirements of the enterprises are determined.

    $2.49

    ADVERTISEMENT