A Firm That Chooses Strategy B, as Portrayed in Chapter

question 35

Multiple Choice

A firm that chooses Strategy B, as portrayed in Chapter 29, should plan to

• A)maintain a high ratio of current assets to sales.
• B)use low or no short-term debt and more long-term financing.
• C)repurchase a substantial number of shares.
• D)be a short-term lender during a part of the year and a borrower during the rest.

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Definitions:

Right-To-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, allowing individuals in the workforce to work without being compelled to join a union.

Union Shop

A place of employment where nonunion workers may be employed for a trial period of not more than 30 days, after which the nonunion workers must join the union or be discharged.

Closed Shop

A place of employment in which the employer, by agreement, hires only union members in good standing.

Public Employees

Individuals employed by government entities at the federal, state, or local level.