Net Working Capital

question 49

Multiple Choice

Net working capital:

• A)can be ignored in project analysis because any expenditure is normally recouped at the end of the project.
• B)requirements, such as an increase in accounts receivable, create a cash inflow at the beginning of a project.
• C)is rarely affected when a new product is introduced.
• D)can create either a cash inflow or a cash outflow at time zero of a project.
• E)is the only expenditure where at least a partial recovery can be made at the end of a project.

---

Definitions:

Deming

Refers to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in the field of quality management.

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is known as the father of scientific management.

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Knights of Labor

A significant labor organization in the United States during the late 19th century that aimed to protect and improve workers' rights through collective action.