If Demand for a Firm's Products Suddenly Slows Down So

question 138

Multiple Choice

If demand for a firm's products suddenly slows down so that inventory increases while sales decrease, how will the firm's needs for net working capital react?

• A) Net working capital would increase.
• B) Net working capital would decrease.
• C) There would be no change in net working capital.
• D) Net working capital would first decrease, then increase slowly over time.

---

Definitions:

Niche Marketing

A targeted marketing strategy focusing on a specific segment of the market, tailor-made to satisfy the unique needs and preferences of that segment.

Marketing Mix

A set of controllable marketing variables comprising product, price, place, and promotion that a firm uses to pursue its marketing objectives in the target market.

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Post-purchase Stress

The anxiety or concern felt by consumers after making a purchase, typically due to doubts about the decision or the product's performance.