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3. Financial Management
What will your outlook towards maintenance of liquid assets
to ensure that the firm has adequate cash in hands to meet
its obligation at all times?
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Answer Posted / suman
Generally speaking, you must limit expenses and ensure that
some of your assets are in the form of short term assets.
The higher your short term assets and the less your short
term debt, the better your ability to pay the debt (short
term liquidity ratio / liquidity ratio help you determine
this).The ratio analysis will be the guide stick for the
liquidity ratio.
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