The risk of illiquidity is increased if either cash and marketable securities are decreased,or if the firm relies more heavily on long-term debt.
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Q9: Current assets would usually NOT include
A) plant
Q10: Higher liquidity (holding larger cash and marketable
Q11: A company decreases the risk of insolvency
Q12: Long-term debt is generally less costly than
Q13: Short-term debt has a greater risk of
Q15: Management of a firm's liquidity involves management
Q16: A firm increases the risks of insolvency
Q17: Three basic factors that determine which sources
Q18: Although interest rates are generally higher on
Q19: Interest costs for short-term debt are generally
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