As Long as a Firm Is Generating Positive Net Income

question 137

True/False

As long as a firm is generating positive net income each year it need not be concerned with working capital management because it will always be able to meet all short-term liquidity needs.

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Definitions:

Imitate

The action of copying or replicating someone’s gestures, speech, or behaviors.

Social Learning

The theory that people can learn new behaviors by observing and imitating others, as well as by receiving rewards and punishments.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Latent Learning

Pertains to knowledge acquired without any immediate or visible reinforcement or outcome, becoming apparent only when needed.