Which of the Following Projects Would Increase Net Working Capital

question 246

Multiple Choice

Which of the following projects would increase net working capital the most?

• A) Financing a land purchase for a new manufacturing plant via a sale of new stock.
• B) Decreasing the amount of sales your firm makes on credit.
• C) Decreasing the number of product lines your firm carries.
• D) Changing your production schedule so that you produce goods only after a customer order.
• E) Using long-term bank credit to reduce payables.

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Definitions:

Working Classes

Social groups comprised of individuals primarily engaged in manual labor or industrial work, often associated with lower income levels and less education.

Poverty Line

A threshold set by governments or organizations defining the minimum level of income deemed adequate in a particular country to live on.

Single Canadians

Canadian citizens who are not married or in a marital-like relationship.

Age

A measure of the length of time that a person or thing has existed, often considered in the context of one's life stage, capabilities, or societal roles.