Which of the Following Statements Regarding Investment in Working Capital

question 94

Multiple Choice

Which of the following statements regarding investment in working capital is incorrect?

• A)investment in working capital, unlike investment in plant and equipment, represents a positive cash flow.
• B)the cash flow is measured by the change in working capital, not the level of working capital.
• C)the working capital may change during the life of the project.
• D)working capital is recovered at the end of the project.

---

Definitions:

Incest

Sexual relations between people classified as being too closely related to marry each other.

Punishable Offense

An act or behavior that is deemed illegal or wrong by law, subjecting the perpetrator to legal penalties or punishments.

Individualistic Culture

A culture that emphasizes personal autonomy and self-reliance, valuing individual rights and achievements over collective goals.

Job Security

The likelihood of a person maintaining their employment without facing unemployment risks.