The Primary Objective of Short-Term Financial Management Is To

question 142

Multiple Choice

The primary objective of short-term financial management is to:

• A) Find the optimal trade-off point between carrying costs and shortage costs.
• B) Minimize the investment in net working capital.
• C) Minimize the use of external financing.
• D) Locate the source of financing that provides the lowest cost of capital.
• E) Fund all company operations using long-term debt.

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Definitions:

Extinction

In behavioral psychology, the process by which a previously learned response decreases in frequency or disappears when reinforcement is withheld.

Inhibition

A psychological or physiological process that decreases or suppresses certain behaviors, emotions, or actions.

Suppression

The conscious deliberate effort to control and inhibit unwanted or unacceptable thoughts, feelings, or impulses.

Conditioned Forgetting

The loss of a memory due to interference from learning through conditioning, rather than organic causes.