Your Firm Has a Net Cash Inflow for the Quarter

question 140

Multiple Choice

Your firm has a net cash inflow for the quarter of - $26 (negative) . The beginning cash balance is $12. Company policy is to maintain a minimum cash balance of $10 and borrow only the amount that is necessary to maintain that balance. How much does your firm need to borrow to have a zero cumulative surplus?

• A) $0
• B) $4
• C) $10
• D) $18
• E) $24

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Definitions:

Determinism

The view that every event in the universe is dependent upon other events that are its causes. In this view, all human actions and decisions, even those we would normally describe as free and undetermined, are totally dependent on prior events that cause them.

Responsible

Being accountable or to blame for something, often reflecting a moral or legal obligation.

Socrates

An ancient Greek philosopher who is considered one of the founders of Western philosophy, known for his Socratic method of questioning.

Right To Life

A fundamental human right that protects individuals' entitlement not to be arbitrarily deprived of their life.