Which of the Following Statements Is NOT CORRECT

question 43

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales,profits,and cash flows during the coming year.
• B) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• C) The cash budget is useful to help estimate future financing needs,especially the need for short-term working capital loans.
• D) If a firm wants to generate more cash flow from operations in the next month or two,it could change its credit policy from 2/10,net 30 to net 60.
• E) Managing working capital is important because it influences financing decisions and the firm's profitability.

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Definitions:

Labor Union

An organization of workers that aims to negotiate with employers for better wages, working conditions, and benefits.

Efficiency Wages

A concept in economics where employers pay higher than the market equilibrium wage to increase worker productivity, loyalty, and quality.

Labor Unions

Organizations representing the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Surplus

The amount by which production, resources, or inventory exceeds the actual demand or use.