RB Enterprises (RBE) Received an Unexpected Phone Call from a Competitor

question 60

Multiple Choice

RB Enterprises (RBE) received an unexpected phone call from a competitor offering all of its assets to RBE at a bargain basement price. While RBE had not anticipated purchasing these assets, the opportunity was too good to pass up. This illustrates which one of the following needs to hold cash?

• A) Precautionary
• B) Transaction
• C) Speculative
• D) Compensation
• E) Float

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Definitions:

Sensory Inhibition

The neurological process by which the brain tunes out repetitive, irrelevant stimuli while remaining sensitive to others.

Reaction Formation

A defense mechanism where an individual behaves in a way that is opposite to their own uncomfortable or unacceptable thoughts or feelings.

Paradoxical Heat

A sensation of burning heat felt when a cold stimulus is applied to a specific area of the skin, typically due to nerve damage.

Encapsulated End Organs

Sensory receptors surrounded by capsule structures that are sensitive to pressure and vibration.