All else equal, active retention is a good option for firms: a. That have highly liquid assets b. That do not have a lot of debt c. Whose losses are predictable d. all of the above e. none of the above

Question

Business

Porche

6 November, 11:44

All else equal, active retention is a good option for firms: a. That have highly liquid assets b. That do not have a lot of debt c. Whose losses are predictable d. all of the above e. none of the above

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Answers (1)

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Jabari · Answer 1

So non of the above is the right answer.

Explanation:

The act of active retention means designating specific funds to pay for unforeseen losses of an organisation. It also serves to serve debt.

A firm having highly liquid asset, do not need active retention because firm may sell the asset at any time.

So none of the above is the right answer.