What Happens to a Firm's Net Worth as It Uses

question 75

Multiple Choice

What happens to a firm's net worth as it uses cash to repay accounts payable?

• A)net worth increases.
• B)net worth decreases.
• C)net worth remains constant.
• D)net worth decreases temporarily, until cash is replenished.

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Definitions:

Contingent Reward-Based Practices

Management strategies that offer rewards or incentives based on the achievement of specific criteria or performance goals.

Authoritarian Leaders

Leadership style characterized by individual control over all decisions with little input from group members, often involving strict rules and regulations.

Assertive Risk Takers

Individuals who confidently engage in actions that involve risk, often with the belief that they can positively influence the outcome.

Authentic Leadership

Authentic leadership is a leadership style characterized by self-awareness, integrity, transparency, and a focus on building trust with followers.