Which of the Following Statements About Net Working Capital (NWC)

question 36

Multiple Choice

Which of the following statements about net working capital (NWC) is correct?

• A)NWC is positive for all firms.
• B)as NWC decreases, potential liquidity increases.
• C)NWC excludes inventory, which is deemed illiquid.
• D)decrease in NWC can increase the firm's risk of bankruptcy.

Understand the purpose of using control and experimental groups in research studies.

Distinguish between experimental and non-experimental research methods.

Recognize the importance of measuring variables appropriately to accurately analyze and interpret research findings.

Understand the basics and objectives of observational research.

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Definitions:

Domestic Work

Labor performed within the home, including tasks such as cleaning, cooking, child care, and maintenance, often for hire.

Traditional Nuclear Family

A family unit consisting of two parents (traditionally a male and female) and their biological children, living together and functioning as a single household.

Office Work

Tasks and responsibilities performed in an office environment, often related to administrative, clerical, or professional needs of a business or organization.

Traditional Nuclear Family

A family unit consisting of two parents (traditionally a male and female) and their biological or adopted children, living together as a household.