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

question 116

Multiple Choice

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

• A) The firm uses more trade credit.
• B) The firm increases its inventory in anticipation of seasonal sales.
• C) The firm pays off a short-term bank loan with cash.
• D) All of these choices are correct.

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Definitions:

Supremacy Clause

Article VI, Paragraph 2, of the U.S. Constitution, which states that the Constitution and all laws and treaties of the United States constitute the supreme law of the land. Thus, any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void.

Article VI

Refers to the Supremacy Clause within the United States Constitution, which establishes that the Constitution and federal laws are the supreme law of the land.

Enact Legislation

The process by which governmental bodies formally adopt new laws or amend existing ones.

President Veto

The power of a President to reject legislation passed by the legislature, which can be overridden only by a supermajority vote.