Terry Wells Owns a Growing Company That Makes Innovative Kitchen

question 50

Multiple Choice

Terry Wells owns a growing company that makes innovative kitchen appliances. One thing that Terry has to continually work at is to keep enough cash on hand to make sure she has sufficient liquidity to meet her payroll and cover her other short-term obligations. The day-to-day challenge of firm growth this example is referring to is ________.

• A) quality control
• B) capital constraints
• C) price stability
• D) cash flow management
• E) personnel issues

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Definitions:

Tangible Property

Physical property that can be touched and seen, such as buildings, machinery, and inventory.

Stocks

Shares of ownership in a corporation, giving holders a claim on the corporation's earnings and assets.

Bonds

Bonds are fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, with terms specifying repayment of principal and interest.

Negotiable

Capable of being discussed or modified in terms of agreement or transferability, often used in relation to contracts or financial instruments.