Question 15
Business FinanceThe form of capital which is easily transferred into the form desired is known as
- A.working capital
- B.liquid capital
- C.circulating capital
- D.capital employed.
Show the answer and explanation
Answer: B (liquid capital)
Explanation
Liquid capital is money or assets that are almost money. Because cash can buy anything, it is the capital most easily changed into whatever form the business needs.