Which of the Following Is NOT True Concerning Application of the Conservation

question 1

Multiple Choice

Which of the following is NOT true concerning application of the conservation of value principle to acquisitions?

• A)An acquisition will create value if it increases cash flows sufficiently by reducing costs.
• B)An acquisition will create value if it increases cash flows sufficiently by increasing revenue growth.
• C)An acquisition will create value if it increases cash flows sufficiently by improving the use of fixed or working capital.
• D)An acquisition will create value if it grows revenues.

Distinguish between different types of auctions and their roles in buying and selling processes.

Identify the components and functions of different online trading communities and platforms.

Understand the significance of buying situations that require changes in product specifications, price, delivery schedules, or suppliers.

Recognize the contribution of e-marketplaces to facilitating real-time exchanges of information, money, products, and services.

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Definitions:

Credit Policy

A set of guidelines that a company uses to determine the credit terms and conditions for its customers.

Economic Order Quantity

is a formula used by businesses to determine the optimal amount of inventory to order at one time, aiming to minimize holding and ordering costs.

Variable Cost

Costs that vary directly with the level of production or service delivery.

Carrying Cost

Expenses associated with holding or storing inventory, including insurance, storage, and opportunity costs of invested capital.