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Liquid capital in a business means the

Commerce
WAEC 2011

Liquid capital in a business means the

  • A. movable assets of the business
  • B. authorised capital
  • C. issued capital
  • D. assets easily convertible to cash
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Correct Answer: Option D
Explanation

Liquid capital, or fluid capital is a readily convertible asset, such as money or other bearer economic instruments, as opposed to a long term asset like real estate.  It is the asset that is easily converted to cash


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