The ability to meet short-term obligations and to efficiently generate revenues is called Liquidity and efficiency. Solvency. Profitability. Creditworthiness
The correct answer is Liquidity and Efficiency
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Question & Answer: The ability to meet short-term obligations and to efficiently generate revenues is called Liquidit…..
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Liquidity means that the firm has sufficient current assets to meet its obligations towards its current liabilties. This means that the firm would be able to repay the liabilities as and when they arise.
On the other hand,efficiency means the optimum utilisation of resources to carry out the operations of the business in the best manner. This in turn would imply that efficiency means that the operations of the business are carried out in such a manner that the revenues are generated to its best capacity.