Firms are concerned about liquidity, which means the ability to convert inventory into credit sales.

Name: Firms are concerned about liquidity, which means the ability to convert inventory into credit sales.
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Quizplus · Accepted Answer

Liquidity refers to the ability of a firm to convert its assets into cash or to pay its short-term obligations. It is not specifically about converting inventory into credit sales, but rather about the ease of converting assets into cash.

Firms Are Concerned About Liquidity, Which Means the Ability to Convert