Multiple Choice
Which of the following statements regarding liquidity and profitability is not true?
A) If a business is unable to pay its debts as they come due,it is operating unprofitably.
B) A business may be liquid,yet operate unprofitably for several years.
C) A business may operate profitably,yet be unable to meet its obligations.
D) In order to survive in the long run,a business must both remain liquid and operate profitably.
Correct Answer:
Verified
Correct Answer:
Verified
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