Which of the Following Factors Does Not Directly Affect the Firm's

question 3

Multiple Choice

Which of the following factors does not directly affect the firm's level of investment in working capital?

• A) the firm's inventory and credit policies
• B) the age of the firm's plant and equipment
• C) the firm's sales level
• D) the length of the firm's operating cycle

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Definitions:

Physiological Arousal

The body’s response to a stimulus, which includes increased heart rate, sweating, and heightened senses.

States of Emotion

The temporary emotional experiences or feelings that vary in intensity and occur in response to external or internal events.

Two-Factor Theory

The Schachter-Singer theory that to experience emotion one must (1) be physically aroused and (2) cognitively label the arousal.

Sympathetic Nervous System Activity

Part of the autonomic nervous system that prepares the body for "fight or flight" responses, increasing heart rate, blood flow, and energy release.