Which of the Following Actions Would Improve a Firm's Liquidity

question 24

Multiple Choice

Which of the following actions would improve a firm's liquidity?

• A) purchasing inventories for cash
• B) purchasing inventory on trade credit
• C) purchasing inventory with long-term debt
• D) buying machinery with long-term debt

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Definitions:

Foreign Investment

The investment by individuals, businesses, or governments in assets or enterprises within a foreign country to gain a return.

Sociological Theory

A set of ideas that provides an explanation for human society, analyzing the patterns and structures that shape social behavior.

Military Intervention

The act of a country sending its military into another country for the purpose of ending conflict, establishing control, or protecting interests.

Modernization Theory

A theory that suggests societies progress through stages of economic, social, and cultural development, moving from traditional to more advanced stages.