Which of the following statements is false ? (A) There is an inverse relationship between Liquidity and Profitability and these two are competing goals for a finance manager (B) While the immediate survival of a firm dep
CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following statements is false ? (A) There is an inverse relationship between Liquidity and Profitability and these two are competing goals for a finance manager (B) While the immediate survival of a firm depends on profitability, its long term survival depends on liquidity (C) Liquidity and Profitability both are important for a firm to survive (D) A firm should maintain a trade-off situation where it maintains its optimum liquidity for greater profitability, and the finance manager has to strike a balance between two conflicting objectives.
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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