Asked by Belinda Riojas on Jul 09, 2024
Verified
A low level of cash may force the firm to interrupt operations.
Low Level of Cash
This term indicates a situation where a business or individual has minimal amounts of liquid assets or money on hand.
- Understand the dilemmas linked to holding either an abundance or a shortage of cash.
Verified Answer
RM
Rebecca MartinJul 13, 2024
Final Answer :
True
Explanation :
A low level of cash means that the firm may not have enough liquidity to meet its financial obligations such as paying bills or employees. This may result in an interruption of operations if the firm is unable to continue purchasing inventory or paying necessary expenses.
Learning Objectives
- Understand the dilemmas linked to holding either an abundance or a shortage of cash.