Which of the Following Will Expand Working Capital

question 7

Multiple Choice

Which of the following will expand working capital?

• A) Purchase of inventory for a new store through a bank loan.
• B) Purchase of plant and equipment by means of a bond issue.
• C) Collection of accounts receivable.
• D) Payment of accounts payable with cash.
• E) Advance payment of three months' rent with cash.

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Definitions:

Ethical Considerations

Refers to the principles and values that guide behavior and decision-making based on notions of right and wrong.

Unethical Behaviour

Actions that are dishonest, immoral, or violate moral principles and standards.

Profit Motive

The primary incentive for businesses to operate and expand, driven by the pursuit of financial gain.

Pareto Efficient

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.