A Firm with Negative Net Working Capital _______________

question 319

Multiple Choice

A firm with negative net working capital _______________.

• A) Is technically bankrupt.
• B) Has no cash on hand.
• C) Needs to sell some of its inventory to correct the problem.
• D) Has more current liabilities than current assets.
• E) Most likely will not run short of cash over the next six months.

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Definitions:

Job Rotation

A human resource management strategy where employees rotate between multiple positions within the organization to learn different aspects of a business and enhance skill diversity.

Political Activity

Actions or movements aimed at influencing or participating in the governance of a society.

Higher Levels

a term usually referring to more advanced stages or more senior positions within a hierarchy or process.

Office Politics

Leveraging power and interpersonal networks in an establishment to bring about changes that serve the organization or individuals in it.