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Business Operations Risk management
Question:
What is a disadvantage of maintaining a very high level of liquidity?
Liquidity
Liquidity is a term in finance that describes how easily an entity can convert its assets to cash. Market liquidity is where assets are purchased and sold quickly and accounting liquidity, are two main types of liquidity.
Answer and Explanation:1
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Cons of high liquidity in a company are:
1.Low return: Liquid assets like a bank or current debtors doesn't provide a lot of returns. Liquidity on...
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