The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due.

Name: The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due.
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Question

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The liquidity of a business firm is measured by its ability to satisfy its short-term obligations as they come due, not necessarily its long-term obligations. Long-term obligations are typically measured by a company's solvency.

The Liquidity of a Business Firm Is Measured by Its