Which of the Following Is a Correct Statement

question 229

Multiple Choice

Which of the following is a correct statement?

• A) The objective of short-term financial management is to maximize carrying costs.
• B) Managing short-term cash flows involves minimizing liquidity.
• C) In managing short-term finances, a financial manager should seek the optimal level of investment in fixed assets.
• D) A financial manager should use a cash budget to identify short-term financial needs.
• E) In an ideal economy, the optimal level of net working capital is positive.

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Definitions:

Networking

The act of building and maintaining professional or social relationships, often to share information, find opportunities, or support one another.

Referent Power

A form of influence based on identification with, attraction to, or respect for the leader.

Expert Power

Expert power is a form of influence based upon the perception of special knowledge, skills, or expertise that an individual possesses.

Automatic Thinking

The process of making quick, instinctive judgments and responses without conscientious deliberation, often based on learned behaviors or biases.