Which Three of the Following Could Contribute to Increases in Current

question 42

Multiple Choice

Which three of the following could contribute to increases in current working capital, as calculated as part of a cash flow approach?

• A) Rise in cash requirements
• B) Rise in future earnings
• C) Rise in stocks
• D) Rise in debtors

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Definitions:

Franchising

A method of doing business wherein a franchisor gives rights to a franchisee to operate a business or sell a product under the franchisor's brand in exchange for fees or royalties.

Contractual Agreement

A legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or transaction.

KFC Brand

A globally recognized fast-food franchise known for its fried chicken, originating in the United States and established by Colonel Harland Sanders.

Direct Investment

The action of an entity from one country investing to achieve dominant control over a corporation in another country.