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For those of us who are involved in the world of finance, be it investors, traders, businessmen, it is very important to know the liquidity of a business. The term liquidity refers to the ability of an asset to be converted into cash and based on the speed of conversion, liquid assets are also classified into several groups such as current liquidity, operational liquidity, investment liquidity, etc. So in your opinion, what are the roles/benefits of liquidity in business for both business owners and investors?
