Which of the Following Statements Is an Example of Correlation

question 20

Multiple Choice

Which of the following statements is an example of correlation?

• A) Drunken driving is the cause of road accidents.
• B) Unsafe sex leads to transmission of sexually transmitted diseases.
• C) Consumption of excessive sugar leads to diabetes.
• D) Obesity is associated with heredity.
• E) Adultery leads to divorce.

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Definitions:

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.

Flexible Short-term Policy

A financial strategy that allows for maintaining a higher level of current assets, providing a buffer against unforeseen liabilities or expenses.

Restrictive Short-term Policy

A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.