Generally, as financial flexibility increases, the risk of enterprise or business failure will
A) increase.
B) decrease.
C) stay the same.
D) be eliminated.

Question

Quizplus · Accepted Answer

Financial flexibility refers to a company's ability to quickly respond to unexpected financial needs or opportunities through access to cash or credit. This flexibility reduces the risk of enterprise or business failure, as the company is better equipped to handle downturns or unexpected events. By having more financial resources available, a company can more easily weather financial hardships and make strategic investments. Therefore, as financial flexibility increases, the risk of enterprise or business failure will decrease.

Generally, as Financial Flexibility Increases, the Risk of Enterprise or Business