Tidewater Distributors Is Successfully Using Short-Term Financing to Buy Inventory

question 14

Multiple Choice

Tidewater Distributors is successfully using short-term financing to buy inventory for resale.As sales climb, the managers realise that they must decide what to do with the money.Since you are the financial manager, they ask for your advice.You advise them to first

• A) repay the short-term obligations out of the sales revenue.
• B) use the money to buy a yacht for the managers.
• C) increase all employees' wages.
• D) enroll all the salespeople in a sales training course.
• E) borrow more money.

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Definitions:

Intrinsic Rewards

Internal satisfaction or fulfillment derived from engaging in an activity, without external incentives.

Continuous Reinforcement

A reinforcement schedule in which a particular response is always reinforced.

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly associated with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.