Liquidity position of the enterprise
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?
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.
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