An example of a company that has high liquid assets is “Cisco Systems”. The company’s liquid assets as a percentage of total assets stand at 49.3%. Also the company’s liquid assets as a percentage of total revenue stand at 103.6%.
The reason why Cisco has such high amount of liquid assets is that the company likes to maintain a safe level of current assets to meet its obligations. Cisco is an IT company and hence, given its unpredictable and volatile business environment, likes to maintain a reasonable level of cash buffer without leaving too much of its capital in a low-return accruing environment.
2. Provide an example of a business or industry that has high operating leverage and one that has low operating leverage and explain why the operating leverage is high or low in each case.
Should government debts exist to provide a liquid security? Explain why or why not.
Why is it important to hold some liquid and some illiquid assets?
1-Define asset liquidity. Provide an example of a highly liquid and highly illiquid asset?
Short answers 2-3 sentences. what assets make up current assets and which are the least liquid and why? when a firm has a “low asset turnover ratio”? (hint: focus on the fact that the firm may not be managing his assets well or the level of assets may be too high for the volume of sales. Maybe the firm has obsolete items…..better management is needed). Explain the purpose of trend analysis and why do we use industry comparison?
Provide an Example for each of the followings. If there is Not any example explain why. A subgroup of (Z,-): A non-commutative ring with a multiplicative identity : • An integral domain that is not a subset of the complex numbers : A subgroup of Z40 that has order 7 : .
Provide an example that follows either the binomial or Poisson distribution, and explain why that example follows that particular distribution.
Should we always consider a reliable measure as valid? Why or why not? Provide an example.
A company with a liquid inventory will have: Select one: a. A high inventory tunover and a low average number of days to sell inventory. b. A low inventory turnover and a low average number of days to sell inventory. O c. A high inventory turnover and a high average number of days to sell inventory. d. A low inventory turnover and a high average number of days to sell inventory. 6
Provide a work-related example of how someone with high intellectual intelligence either did or did not show high emotional intelligence.