Which of the Following Is NOT a Situation That Might

question 65

Multiple Choice

Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?

• A) The firm must make a known future payment,such as paying for a new plant that is under construction.
• B) The firm is going from its peak sales season to its slack season,so its receivables and inventories will experience a seasonal decline.
• C) The firm is going from its slack season to its peak sales season,so its receivables and inventories will experience seasonal increases.
• D) The firm has just sold long-term securities and has not yet invested the proceeds in operating assets.
• E) The firm just won a product liability suit one of its customers had brought against it.

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Definitions:

Benefits

Advantages or positive outcomes that accrue from a particular course of action or policy.

Transformational Leadership

A style of leadership where a leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.

Moral Values

Fundamental beliefs about what is right or wrong, which serve as a basis for behavior and form the foundation of ethical conduct.

Ethical Issues

Challenges or situations that involve choosing between moral principles, where the right course of action is not immediately clear.