MGT 411 solved assignment NO 2 enjoy
Posted: Wed Jan 09, 2013 5:42 pm
MGT 411 solved assignment NO 2 enjoy
QNO1 : B
Asset management involves the management of assets, such as investments or property. Liability management is the flip side of the coin: the management of debts, loans and mortgages for example. Most people and indeed most companies have a mixture of assets and liabilities to manage in order to maximise their returns or their growth of wealth. If liabilities are ill-attended, they can result in forced sell-offs of assets and where liabilities are far greater than the assets of course, individuals can be considered to be very highly leveraged, for example a first-time house buyer who may have a high mortgage. Liabilities in themselves are not necessarily a bad thing, but arguably more people have lost most through poor liability management than weak asset management.