Which Statement Concerning Working Capital Is Not True

question 54

Multiple Choice

Which statement concerning working capital is not true?

• A) It is possible to have too much working capital.
• B) The greater the working capital, the better.
• C) It is possible to have too little working capital.
• D) There is an 'ideal' level of working capital.

---

Definitions:

Object Permanence

The understanding, typically developed in infancy, that objects continue to exist even when they cannot be observed or heard.

Sensorimotor Period

In Piaget’s theory, the period of cognitive development from birth to about 2 years, in which the child has not yet achieved object permanence.

Egocentrism

A cognitive bias that makes an individual unable to understand or assume any perspective other than their own.

A-not-B Effect

A cognitive phenomenon observed in infants where they repeatedly reach for an object at a place (A) where it was previously found, even after seeing it moved to a new location (B).