What is a company said to have if it has cash and/or more spare debt capacity?
A) Indirect costs
B) Financial slack
C) Financial risk
D) Signals

Question

Quizplus · Accepted Answer

A company is said to have financial slack if it has cash reserves or available debt capacity, which can provide a cushion in case of unexpected expenses or opportunities. Financial slack can also allow a company to invest in new projects or acquisitions without having to issue new equity or raise external funds.

What Is a Company Said to Have If It Has