Which of the Statements Below Is FALSE

question 81

Multiple Choice

Which of the statements below is FALSE?

• A)A simple monthly cash flow estimate allows managers to anticipate periods when the company may need to borrow and periods when the company will have excess cash for investing.
• B)There is a problem in managing cash if sales are low for several months,causing a negative balance and delaying payments to suppliers or employees.
• C)There are four basic ways to handle cash surpluses: Savings; Unsecured Loans (Commercial Paper,Trade Credit,or Banker's Acceptance); Secured Loans (Using Accounts Receivable or Inventories); and Other Sources (Letters of Credit).
• D)By far the simplest way to cover a cash deficit is to take money out of one's savings account-provided,of course,that one has sufficient savings to cover the necessary transfer.

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses with long-term growth potential in exchange for an equity stake.

First Stage Investment

The initial round of funding for a startup or business venture, typically provided by venture capitalists or angel investors to support early development.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Strategic Circumference

The boundary or scope within which strategic decisions and actions take place, defining the extent of an organization's strategic domain.