Which of the Following Is Not a Condition Under Which

question 37

Multiple Choice

Which of the following is not a condition under which a prudent manager would accept some risk in financing?

• A) Predictable cash-flow patterns
• B) Inventory is highly perishable
• C) Price of inventory is stable
• D) Easy access to capital markets

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Definitions:

Sedimentary Deposits

Layers of minerals and organic particles deposited by water, wind, or ice, often forming rocks through compaction and cementation over time.

Mountain Ranges

Chains or clusters of mountains that are close together, formed through tectonic forces or volcanism.

Copper Deposits

Concentrations of copper ore found naturally in geological formations, often mined for economic purposes.

Felsic Intrusions

Igneous rock formations rich in light-colored minerals such as quartz and feldspar, formed from magma that intrudes into the crust but does not reach the surface.