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Options
- A
Ability to generate profits
-
Ease of converting an asset into cash without loss
Correct answer
- C
The ratio of current assets to current liabilities
- D
Total cash held by a company
Why this is the answer
Liquidity measures how quickly and easily an asset can be converted into cash at its fair market value. While options C and D relate to financial resources, they do not fully capture the concept of liquidity, and option A relates to profitability, not liquidity.
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