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.

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Definitions:

Reward Power

The capacity to influence others by providing or withholding desired outcomes.

Information Power

A form of power that comes from access to, control over, and distribution of information.

Legitimate Power

The authority that a person possesses as a result of their position in an organization's hierarchy.

Process View

A perspective in operations management that sees activities in an organization as a collection of processes, focusing on how work is done within an organization.