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If a potential investor wants to assess the ability of a company to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities, the investor is assessing:

Sagot :

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.

What is company 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.