When a fiRm Wishes to Increase Its Net Working Capital

question 190

Multiple Choice

When a firm wishes to increase its net working capital turnover rate, it should _____, all else constant.

• A) increase its current assets
• B) increase its total assets
• C) decrease its current liabilities
• D) decrease its total liabilities
• E) increase its sales

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Definitions:

Inverse Supply

Displaying how supply levels adjust based on varying price points; this model inversely associates the supply quantity with its price.

Inverse Demand

A rephrased definition: It refers to the relationship that shows the price of a good as a function of the quantity demanded, essentially the inverse function of a demand curve.

Tax

A required economic dues or other form of assessment exacted from a taxpayer by government authorities meant to finance government activities and assorted public costs.

Excess Supply

Occurs when the quantity of a good or service supplied is greater than the quantity demanded at a given price.