A Firm's New President Wants to Strengthen the Company's Financial

question 67

Multiple Choice

A firm's new president wants to strengthen the company's financial position.Which of the following actions would make the company financially stronger?

• A) Increase accounts receivable while holding sales constant.
• B) Increase EBIT while holding sales and assets constant.
• C) Increase accounts payable while holding sales constant.
• D) Increase notes payable while holding sales constant.
• E) Increase inventories while holding sales constant.

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Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often leading to a more pronounced stance.

Political Conservatism

An ideology or political stance that emphasizes the value of traditional institutions and practices, resistance to rapid change, and cautious policies.

Sorority

A social organization for female college students, often characterized by a shared residence, common interests, and various social activities.

Social Loafing

The inclination of people to put forth less effort when they are part of a team as opposed to when they are working by themselves.