The managers of a business have the dual objective of generating net income (profitability) and keeping the enterprise solvent (liquidity).

Question

Quizplus · Accepted Answer

The statement is true. Managers of a business need to focus on generating net income (profitability) to ensure the long-term success of the business, but they also need to ensure that the business remains solvent (liquidity) by managing cash flow and keeping sufficient reserves to cover any unexpected expenses or downturns.

The Managers of a Business Have the Dual Objective of Generating