Which of the Following Projects Would Increase Net Working Capital

question 35

Multiple Choice

Which of the following projects would increase net working capital the most?

• A) Financing a land purchase for a new manufacturing plant via a sale of new stock.
• B) Decreasing the amount of sales your firm makes on credit.
• C) Decreasing the number of product lines your firm carries.
• D) Changing your production schedule so that you produce goods only after a customer order.
• E) Using long-term bank credit to reduce payables.

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Definitions:

Bias

Bias refers to a predisposition or prejudice towards or against something or someone, often in a way considered to be unfair or irrational.

Stereotype Assimilation

The phenomenon where individuals or groups adopt behaviors and attitudes based on generalized and oversimplified perceptions of their identity.

Stereotype Reactance

The defiance or oppositional behavior that individuals might display when they feel stereotyped or categorized in a limiting way.

Leadership Performance

The effectiveness with which a leader influences their group or organization towards achieving defined objectives and goals.