All of the Following Are True Regarding the Management and Monitoring

question 157

Multiple Choice

All of the following are true regarding the management and monitoring of cash except

• A)companies may have plenty of sales, but insufficient cash to support operations.
• B)the cash to cash operating cycle for a manufacturer is generally shorter than that of a merchandising company.
• C)manufacturers may experience a significant lag between the purchase of raw materials and the receipt of cash from customers.
• D)companies should have sufficient cash to meet payments but minimize the amount of non-revenue-generating cash on hand.

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Definitions:

Dominant Strategy

A strategy in game theory that yields the highest payoff for a player no matter what the other players do.

Annual Profit

The total earnings a company makes in one fiscal year after all expenses and taxes have been subtracted from its total revenue.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal when considering the decisions of other players, leading to a situation where no participant can gain by unilaterally changing their strategy.

Duopolists

Two firms or parties that dominate the market for a particular product or service.