The book addresses a number of fundamental questions around liquidity and profitability. One difference is the way in which they approach various aspects of time - short-term vs. long-term. Which of these prioritizes the short-term?
A) Liquidity
B) Profitability

Question

Quizplus · Accepted Answer

Liquidity prioritizes short-term time horizons as it focuses on the ability of a company to quickly convert assets into cash or access to funds in case of any unexpected event or financial obligations. Profitability, on the other hand, emphasizes long-term objectives, such as maximizing returns over an extended period.

The Book Addresses a Number of Fundamental Questions Around Liquidity