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2 years ago

____________ is the ability of a company to pay its debts as they mature. Liquidity Solvency Financial flexibility Insolvency

Business

2 answers:

Alex73 [517]2 years ago

6 0

Answer:

The answer is Solvency

Explanation:

Merriam-Webster defines solvency as the state of being able to pay all legal debts.

Solvency therefore, is simply a company's ability to meet debts and financial obligations as they mature. A company's solvency is very important because it indicates whether a company will still be in business in future.

Solvency and Liquidity are similar, but the difference is that liquidity is the ability of a business to quickly convert assets to cash in order to meet immediate business needs, while solvency measures a company's ability to meet debts obligations when due.

A company that is insolvent, meaning 'cannot pay off its debts' will often file for bankruptcy.

pshichka [43]2 years ago

4 0

Answer:

Solvency

Explanation:

Solvency is defined as the ability of a company to meet it's long term financial obligations like having the ability to pay off debts as they mature. Solvency measures if a company is able to pay off it's debt in long term.

Although solvency and liquidity are similar, difference is liquidity is more concerned with paying off short term debts.

A company or firm is said to be solvent when the current assets exceeds current liabilities.

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All else equal, a firm would prefer to have a higher gross margin. <br> a. True <br> b. False

Viktor [21]

I Think The Answer Is True.

8 0

2 years ago

A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year,

kumpel [21]

Answer:

a) The company turn its inventory at 1.5.

b) Per unit inventory cost for a product that costs $1000 is $166.67.

Explanation:

a) number of units sold = ($60000000/year)*(1 unit/$2000)

= 30000 units/year

COGS = 30000 units/year*$1000/unit

= $30000000/year

inventory = $20000000

flow time = inventory/flow rate

= $20000000/30000000 per year

= 0.67 years

inventory turns = 1/flow rate

= 1/(0.67)

= 1.5

Therefore, The company turn its inventory at 1.5.

b) %inventory cost per computer = 25%*0.6667 years

= 16.667%

16.667%*$1000 = $166.67 per unit

Therefore, Per unit inventory cost for a product that costs $1000 is $166.67.

8 0

2 years ago

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes

Sauron [17]

The correct answer is A) alignment.

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes clear that the budget given in the plan is far lower than the marketing team had determined it would need. This mistake is likely a result of a lack of alignment.

This means that the marketing manager did not respect the parameters originally indicated. His numbers did not align with the necessities of the plan, which means that he did not take into consideration some important factors that at the end, affected the end result of the budget.

7 0

2 years ago

Enlightened marketing calls for building long-run consumer engagement, loyalty, and relationships by continually improving the b

VMariaS [17]

Answer:

A) customer value marketing

Explanation:

Customer value refers to the value that our customers assign to the products or services that our company sells them. In other words, is the cost of our product or service offset by the benefits that we receive from consuming it. As long as the equation is always favorable to our side, i.e. perceived benefits > cost of our product, our customers will continue to purchase our products or services.

Customer value marketing tries to continuously increase the customers' perceived benefits, therefore always keeping the equation favorable to our side.

6 0

2 years ago

Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in proce

EastWind [94]

Answer:

Ending work in process inventory cost = $55,000

Explanation:

Given:

Material unit cost = $10

conversion cost = $30

Ending Work in progress = 2,500

conversion cost = 40% Completed

Ending work in process inventory cost = ?

Computation of ending Materials Cost:

Materials Cost = [(2,500 units × $10]

Materials Cost = $25,000

Computation of ending Conversion Cost:

Conversion Cost = [(2,500 units × 40%) × $30]

Conversion Cost = [(1,000) × $30]

Conversion Cost = $30,000

Ending work in process inventory cost = Materials Cost + Conversion Cost

Ending work in process inventory cost = $25,000 + $30,000

Ending work in process inventory cost = $55,000

3 0

2 years ago