Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A)A decrease in NWC involves either a reduction in current assets, which generates cash, or an increase in current liabilities, thereby freeing up the shareholder's cash for other things.
• B)A decrease in NWC involves either an increase in current assets, which generates cash, or a decrease in current liabilities, thereby freeing up the shareholder's cash for other things.
• C)An example of an increase in a net working capital is to buy more machines or another plant.
• D)None of these statements is correct.

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Definitions:

Obedience

The act of following orders or instructions from authority figures.

Conformity

The action of adjusting one's behavior or thinking to match those of others or to adhere to societal standards.

Deindividuation

A psychological state occurring in group situations that results in a loss of self-awareness and a decrease in the sense of personal responsibility, often leading to atypical behavior.

Interpersonal Attraction

The force that draws individuals together and the reasons for forming a connection or bond, influenced by physical attractiveness, similarity, social factors, and more.