In what do organizations invest the majority of their capital, and how liquid is their capital...

Question

Question

In what do organizations invest the majority of their capital, and how liquid is their capital once invested.

Answer 1

Answer #1

Investment depends upon the type of industry

-In manufacturing, the majority of the capital is invested in plant, machinery, and equipment

-In service organizations, majority if the capital is invested in financial instruments to earn returns on interest

The liquidity drops upon investment and depends upon the state of current assets and current liabilities

Answer 2

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