Which of the Following Is NOT a Situation That Might

question 123

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

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Definitions:

Energy

The capacity to do work or produce change, present in many forms such as kinetic, thermal, electrical, and chemical.

Muscle Contractions

The process whereby muscle fibers shorten or lengthen to produce movement or apply force against resistance.

Nutrients

Essential substances that organisms need to acquire from their environment to maintain health and support growth.

Oxygen

A chemical element with symbol O, essential for the respiratory processes of most living organisms.