Liquidity is measured by how fast you can turn an asset into cash. Therefore by default cash (or cash equivalents) is the most liquid asset you can have. Then it is usually followed by your accounts/notes receivable, and at the bottom you have your equipment and lastly your buildings. If you take a look at any balance sheet, you will see that they usually follow this format.
In your case, you have to do more research into the requirements that are set up by the parent company. Some requirements are that you have liquid capital outside of any business loans you might have already obtained. This serves as form to gage your dedication into the franchise (if you stand to loose your own cash you will be very dedicated!).
Well hope this helps...
2006-10-30 12:16:05
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answer #1
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answered by Eric 4
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Liquid Capital Franchise
2016-11-13 05:44:56
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answer #2
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answered by Anonymous
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Liquid capital - the fastest things you can turn into cash!! If you are looking at franchise options , they usually ask to have certain amount of money as Luqid capital and the rest can be covered with loans!!
Good luck ,
2006-10-30 13:25:16
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answer #3
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answered by Prince 2
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Liquid Capital is cash you have available. You can look into getting a loan if needed to invest in your franchise, a smalll business should do it.
2006-10-30 11:39:37
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answer #4
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answered by rwhz199 4
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Liquid capital is cash or marketable securities. You could get a loan and have that money available for cash but usually in order to get a loan you have to prove you don't need the loan or have some equity in some asset to put up or a cosignor.
2006-10-30 12:08:18
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answer #5
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answered by EAA Duro 3
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Interesting, I was wondering the same thing myself
2016-08-23 09:48:30
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answer #6
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answered by Anonymous
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