Which of the Following Combination of Factors May Affect a Firm's

question 25

Multiple Choice

Which of the following combination of factors may affect a firm's investment in working capital?

• A) Interest rates, market demand, executive compensation, and the state of the economy.
• B) Interest rates, market demand, the seasons, and the state of the economy.
• C) Interest rates, market demand, the weather, and the state of the economy.
• D) Interest rates, market demand, the political environment, and the state of the economy.
• E) Interest rates, market demand, new high tech inventions, and the state of the economy.

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Definitions:

Lending Money

The act of providing funds to another party with the expectation of being repaid, usually with interest, over a specified period of time.

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments not generally considered as cash equivalents.

Sale Of Land

A transaction involving the transfer of ownership of land property from one party to another.