Which One of These Statements Is Correct

question 16

Multiple Choice

Which one of these statements is correct?

• A)Firms prefer to receive cash later rather than sooner.
• B)Corporate finance focuses on sales and profits.
• C)Value creation depends solely on profits.
• D)The amount of April sales must equal the amount of cash received by the firm during April.
• E)The cash flows of a firm are generally uncertain.

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Definitions:

Rate of Unemployment

The segment of the labor force that is without a job and actively on the look out for employment opportunities.

Passive Approach

A strategy, particularly in investing or management, where minimal intervention or action is taken, often to maintain the current state or to avoid risk.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment, indicating underutilization of resources.

Inflationary Expectations

The anticipation of future inflation rates, influencing economic decisions and behavior.