A Firm Needs Spare Cash Because During Economic Downturns, Sales

question 63

Multiple Choice

A firm needs spare cash because during economic downturns, sales may fall below expectations while outflows could prove higher than was budgeted.Firms sell their accounts receivable at a discount for the purpose of:

• A)Finance motive
• B)Transactions motive
• C)Speculative motive
• D)Obtaining short-term financing

---

Definitions:

Gastric Residual

The volume of fluid remaining in the stomach at a given time, often assessed in patients who are being fed through a tube.

Meconium Aspiration

The inhalation of meconium (first newborn feces) into the lungs before or during birth, which can cause respiratory distress.

NICU

An intensive care unit specializing in the care of ill or premature newborn infants.

Acid-Base

Refers to the mechanisms the body uses to maintain its normal pH balance, ensuring that metabolic processes function correctly.