Which of the Following Is Least Likely to Produce a Need

question 18

Multiple Choice

Which of the following is least likely to produce a need for temporary financing to bridge a cash shortfall?

• A)Building up inventory in anticipation of increased sales in the months ahead
• B)Allowing customers to purchase on credit
• C)Paying insurance policies in advance of the period insured
• D)Purchasing materials on a just-in-time inventory basis

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Definitions:

Mining Equipment

Tools, machinery, and vehicles used in the operation of extracting minerals, metals, and other valuable materials from the earth.

Direct Exporting

A method of entering a foreign market by selling products directly to customers in another country without using intermediaries.

Export Trading Companies

Firms that specialize in international trade, providing services such as market research, distribution, logistics, and financial support to exporters.

Revenue Tariff

A revenue tariff is a tax on imports primarily designed to generate income for the government without necessarily protecting domestic industries.