A Firm Starts Its Year with a Positive Net Working

question 24

Multiple Choice

A firm starts its year with a positive net working capital. During the year,the firm acquires more short-term debt than it does short-term assets. This means that:

• A) the ending net working capital will be negative.
• B) both accounts receivable and inventory decreased during the year.
• C) the beginning current assets were less than the beginning current liabilities.
• D) accounts payable increased and inventory decreased during the year.
• E) the ending net working capital can be positive, negative, or equal to zero.

Recognize key international agreements and organizations involved in trade liberalization.

Understand the concepts of comparative advantage, factor endowments, and how they influence trade dynamics.

Identify and explain the impact of government policies on trade, including subsidies, import restrictions, and export encouragements.

Explain the economic implications of dumping and anti-dumping measures.

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Definitions:

Weighted Average Delay

A measure that calculates the average delay in a system, project, or process, taking into account the weight of each component's delay.

Collection Delay

The time period between when a cheque is deposited and when the funds are available for use.

Average Amount

The sum of a set of values divided by the number of values, often used to find a central value or typical amount in a dataset.

Debit Card

An automated teller machine card used at the point of purchase to avoid the use of cash. As this is not a credit card, money must be available in the user’s bank account.