Which Two of the Following Four Conditions Are Most Apt

question 104

Multiple Choice

Which two of the following four conditions are most apt to cause a quarterly cash shortfall for a firm which is financially sound?
I.A relatively constant level of sales.
II.Periodic expenditures for major equipment purchases.
III.A steady dependence on a constant level of external financing.
IV.Highly seasonal sales.

• A)I and III only.
• B)II and IV only.
• C)III and IV only.
• D)I, II and III only.
• E)II, III and IV only.

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