Ongoing Economic Growth in Real GDP Per Person Requires All

question 111

Multiple Choice

Ongoing economic growth in real GDP per person requires all of the following except_________ .

• A) investment in human capital
• B) saving and investment in new capital
• C) population growth
• D) the discovery of new technologies

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Definitions:

Permanent Working Capital

The minimum amount of working capital a company needs to sustain its daily operations continuously.

Aggressive Working Capital Policy

A strategy involving higher levels of current assets relative to liabilities, aiming for growth but increasing liquidity risk.

Short Term Financing

Borrowing funds for a period typically less than one year, often used to cover gaps in cash flow or finance immediate expenses.

Temporary Working Capital

Additional working capital required to support the fluctuating operational needs of a business beyond its permanent working capital.