When a potential investor is worried about the amounts and timing of cashflows and how they can respond to needs and opportunities, they are assessing liquidity.
Refers to the timing and actual amounts of liquid cash that a company is able to hold.
It allows for a company to deal with emergencies.
Investors look at liquidity to determine how well a company can react when it faces an emergency and needs cash. They need to liquidity to be high enough to meet these demands.
Find out more on liquidity at https://brainly.com/question/14098908.
