Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

Question

Quizplus · Accepted Answer

Financial flexibility is the ability of a company to adjust its cash flows by taking strategic actions. It includes the ability to raise funds when required, managing debt levels effectively, and managing the timing and amount of cash flows. It helps companies to respond to unexpected events and changes in market conditions.

Financial Flexibility Measures the Ability of an Enterprise to Take