Working-Capital Management

question 79

Multiple Choice

Working-capital management

• A) involves managing long-term assets and liabilities.
• B) is not important to small businesses.
• C) deals with assigning cash values to employees.
• D) involves managing short-term assets and sources of financing.

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Definitions:

Purposeful Behavior

Actions taken with specific goals in mind, often reflecting rational decision-making processes.

Costs and Benefits

An analysis or evaluation framework, often used in economics and business, that compares the advantages and disadvantages or gains and costs of a certain action.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Macroeconomics

The part of economics concerned with the performance and behavior of the economy as a whole. Focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as the household, business, and government sectors.