Which of the Following Properly Links the Factors Affecting a Firm's

question 57

Short Answer

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing?
$\begin{array}{lll}& \underline {\text { Ability to generate cash}}&\underline {\text { Need to use cash}}\\a. &\text { Profitability of goods and services sold }& \text { Working capital requirements}\\b. &\text { Sales of existing plant assets }& \text { Plant capacity requirements}\\c. & \text { Borrowing capacity} & \text { Debt service requirements}\\d. & \text { Profitability of goods and services sold }& \text { Debt service requirements}\\\end{array}$

Understand the definition and application of concepts and prototypes in categorizing objects and ideas.

Recognize the role and effect of heuristics, algorithms, and mental sets on problem-solving and decision-making.

Identify and analyze how biases and intuition influence judgments and perceptions.

Understand the cognitive processes involved in thinking, knowing, remembering, and communicating.

---

Definitions:

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.

Useful Life

The length of service of a long-lived asset.

Sell or Process Further

a decision-making process regarding whether it is more profitable to sell a product as is or to process it further.