A Firm Wants to Strengthen Its Financial Position

question 68

Multiple Choice

A firm wants to strengthen its financial position.Which of the following actions would increase its quick ratio?

• A) Offer price reductions along with generous credit terms that would (1)enable the firm to sell some of its excess inventory and (2)lead to an increase in accounts receivable.
• B) Issue new common stock and use the proceeds to increase inventories.
• C) Speed up the collection of receivables and use the cash generated to increase inventories.
• D) Use some of its cash to purchase additional inventories.
• E) Issue new common stock and use the proceeds to acquire additional fixed assets.

Understand the programmability and flexibility of input functions in VFD applications.

Understand the benefits and principles of VFD (Variable Frequency Drive) technology and its impact on motor operation.

Identify the types of motors that are compatible with VFDs and their characteristics.

Describe the significance of the affinity laws in relation to pump and fan operation.

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Definitions:

Average Variable Cost Curve

A graphical representation that shows the relationship between a firm's total variable costs and output levels.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced.

Spreading

The act of extending or distributing something over a wider area or among a larger number of people.

Overhead

Fixed costs that are not directly tied to production levels, such as rent, utilities, and administrative expenses, affecting a company's profitability.