Firm Will Use Spontaneous Funds to the Extent Possible; However

question 38

True/False

firm will use spontaneous funds to the extent possible; however, due to credit terms, contracts with workers, and tax laws there is little flexibility in their usage.

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Definitions:

Expected Utility

A theory in economics that calculates the utility expected from different choices to assess risk and make decisions.

Income

The financial gain that an individual or business receives, usually from employment, business activities, or investments.

Utility Function

A mathematical representation of how a particular good or set of goods generates satisfaction or utility for an individual or consumer.

Flood

An overflow of water that submerges land which is usually dry.