Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)Because investment in permanent working capital is required so long as the firm remains in business,it constitutes a long-term investment.
• B)Because temporary working capital represents a short-term need,the firm should finance this portion of its investment with short-term financing.
• C)Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D)The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

Learn about the practice settings in healthcare, including multi-provider clinics.

Comprehend the importance of appearance and grooming standards in healthcare professionalism.

Grasp the concept and importance of patient navigation in healthcare delivery.

Understand the principles of self-boundaries within the healthcare profession.

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Definitions:

Partner's Contribution

Refers to the resources (capital, property, expertise) a partner brings into a partnership.

Corporation

A legal entity recognized by law as a separate entity from its owners with its own rights, liabilities, and obligations.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs and decision-making processes.

General Partnership

A business structure where two or more individuals own and operate a business together, sharing all profits, losses, and liabilities equally, unless otherwise agreed.