Which of the Following Statements Is True of Arbitration

question 10

Multiple Choice

Which of the following statements is true of arbitration?

• A) historically, arbitration has been used to resolve disputes over contractual rights
• B) arbitrators decisions are usually advisory and not considered final
• C) arbitrators have less control over the outcomes of disputes than do mediators.
• D) arbitration is always more costly and time-consuming than litigation
• E) none of these

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Definitions:

Relaxed Working Capital Policies

Financial strategies that involve maintaining higher levels of current assets than necessary or reducing short-term liabilities, aiming for greater flexibility and lower risk of liquidity problems.

Short-term Loans

Borrowed funds that require repayment within a shorter timeframe, typically less than one year.

Long-term Loans

Financial obligations that are due for repayment over a period longer than one year.

Conservative Financing

A strategy prioritizing lower risk financing options, typically involving higher equity and lower debt levels to minimize insolvency risks.