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Question

A/an crisis in a company means not able to meet its operating expenses.

A
credit
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B
asset
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C
liquidity
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D
operating
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Solution

The correct option is C liquidity
A liquidity crisis in a company means not able to meet its operating expenses. For a single business, a liquidity crisis occurs when the otherwise solvent business does not have the liquid assets (i.e., cash) necessary to meet its short-term obligations, such as repaying its loans, paying its bills and paying its employees.

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