Which of the Following Actions Will Cause a Firm's Net

question 32

Multiple Choice

Which of the following actions will cause a firm's net working capital to decrease?

• A) The firm relaxes its credit policy.
• B) The firm increases its usage of accruals.
• C) The firm pays off a short-term bank loan with cash.
• D) None of the options will cause a firm's net working capital to decrease.

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Definitions:

Performance Management

The ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization.

Employee Relations

The management of the relationship between employers and employees, focusing on maintaining healthy, productive, and legally compliant interactions.

Confidentiality

The requirement to keep certain information secret or private, often to protect personal data or sensitive corporate information.

Competitive Advantage

This refers to the attributes that allow an organization to outperform its competitors, such as superior technology, skilled workforce, or better customer service.