The Need for Operating Funds

question 257

Multiple Choice

The need for operating funds:

• A)eventually is eliminated as a business matures.
• B)increases when a firm introduces new products or enters a new market.
• C)remains constant regardless of the activities of the firm.
• D)is established by relevant government laws and regulations.

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Definitions:

Index Number

A statistical measure that shows changes in a variable or group of variables over time.

Price Drop

A decrease in the market price of a good or asset, usually driven by changes in demand, supply, or broader economic factors.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Basket

A term used in finance to refer to a collection of investments, commodities, or currencies held together.