Which of the following statements regarding financial flexibility is true?
A)It is the ability of a company to provide a return on investment.
B)It is the ability of a company to take effective actions to insure the return of capital to the company.
C)It is the ability of a company to take effective actions to change the amounts and timing of cash flows.
D)It is the ability of a company to maintain a given level of operations.

Question

Quizplus · Accepted Answer

Financial flexibility refers to the ability of a company to take effective actions to change the amounts and timing of cash flows, such as raising capital or selling assets. Options A, B, and D do not accurately reflect the concept of financial flexibility.

Which of the Following Statements Regarding Financial Flexibility Is True