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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?

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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 are cash, ...