Spontaneous Debt Financing Results When Accounts Payable Increase in Proportion

question 54

True/False

Spontaneous debt financing results when accounts payable increase in proportion to a firm's profits.

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Definitions:

Chester Barnard

A business executive and author, known for his contributions to management theory, particularly in the area of organizational and executive functions.

Organizational Behavior

The study of how individuals and groups interact within organizations and the impact of these behaviors on performance and structure.

Representation

The action of speaking or acting on behalf of someone or the state of being so represented.

Leadership

The ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.