Higher Business Management Assignment Marking Scheme
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Assessment of management's plan for managing liquidity, as described in the first section, includes a current maximum dollar assessment of the issuer's ability to raise cash or provide its own liquidity.
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1. Cash Balance 2. Marketable Securities 3. Bank Overdraft
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Liquidity means paying your bills and payroll as well as your long-term commitments repaying loans and raising capital.
Liquidity is calculated by dividing total current assets by total current liabilities.
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