Firms that can't generate cash quickly enough are referred to as having _____.
A) liquidity problems
B) sugging problems
C) high inventory turns
D) stock-outs
E) vertical integration problems

Question

Quizplus · Accepted Answer

Liquidity problems refer to the inability of a firm to generate cash quickly enough to meet its short-term obligations. This can happen due to various reasons such as low sales, high expenses, or poor management of working capital. It can lead to financial distress and even bankruptcy if not addressed in time. Sugging problems, high inventory turns, stock-outs, and vertical integration problems do not necessarily relate to a firm's ability to generate cash quickly.

Firms That Can't Generate Cash Quickly Enough Are Referred to as Having