Most Companies

question 80

Multiple Choice

Most companies

• A)are not concerned with the management of working capital because cash flows are good.
• B)strive for a balance between current assets and current liabilities.
• C)try to maintain protection from the creditors by keeping only a small amount of cash available.
• D)agree that working capital of $3,000,000 is sufficient for business operations.

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Definitions:

Cheap Labor

Workforce available for employment at low wage rates, often used by companies to reduce production costs.

Expensive Labor

refers to the high costs associated with hiring workers, often due to skilled labor demands, labor laws, or other factors increasing wages.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

North American Free Trade Agreement

An agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries, promoting trade.