The ability to raise additional cash by selling assets,issuing stock,or borrowing more is
A)financial flexibility.
B)a credit risk indicator.
C)a stock price predictor.
D)one way to project earnings.

Question

Quizplus · Accepted Answer

Financial flexibility refers to a company's ability to raise additional cash through various means such as selling assets, issuing stock or borrowing more. This ability provides the company with the flexibility to respond to changes in the market and meet unexpected expenses. Therefore, option A is the correct answer. Option B is incorrect as financial flexibility is not related to credit risk indicator. Option C is also incorrect as financial flexibility does not directly impact the stock price. Finally, option D is incorrect as the ability to project earnings is a separate concept from financial flexibility.

The Ability to Raise Additional Cash by Selling Assets,issuing Stock,or