The Basic Strategies That Should Be Employed by the Business

question 173

Multiple Choice

The basic strategies that should be employed by the business firm in managing cash include all of the following EXCEPT

• A) collecting accounts receivable as quickly as possible without damaging customer rapport.
• B) turning over inventory as quickly as possible, avoiding stockouts.
• C) operating in a fashion that requires maximum cash.
• D) paying accounts payable as late as possible without damaging the firm's credit rating.

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Definitions:

Control Groups

In experiments, the groups that do not receive the experimental treatment and are used as a baseline to compare the effects of the treatment.

Treatment Groups

In experimental research, groups of participants receiving the intervention or treatment being tested, as opposed to control groups which receive no treatment or a placebo.

Experimental Research

A research method that investigates causal relationships by manipulating one variable to see its effect on another, under controlled conditions.

Independent Variable

The variable that is manipulated in an experiment to test its effects on the dependent variable.