Which of the Following Statements Is NOT CORRECT

question 56

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• B) The cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans.
• C) 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.
• D) Managing working capital is important because it influences financing decisions and the firm's profitability.
• E) 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.

Understand the influence of environmental forces on marketing decisions.

Recognize the cultural factors affecting buying behavior and marketing strategies.

Understand how legal forces impact marketing and advertising strategies.

Recognize the role and influence of reference groups in consumer behavior.

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Definitions:

Who-What-When

The "Who-What-When" framework outlines a method for capturing and organizing basic factual information, often used in planning, documentation, or analysis.

Success

is the achievement of a goal, objective, or desired outcome.

Well-Written Objective

An objective that is clear, measurable, achievable, relevant, and time-bound, guiding actions towards a specific goal.