When Financial Managers Take Action to Minimize the Carrying Costs

question 91

Multiple Choice

When financial managers take action to minimize the carrying costs of current assets, they:

• A) are likely to maximize profits.
• B) also decrease unnecessary trading costs.
• C) may increase costs due to shortages.
• D)engage in the matching of maturities.

---

Definitions:

Exchange Relationship

A social relationship based on reciprocal actions where each party provides something of value to the other.

Role Clarity

The extent to which individual roles and responsibilities within an organization or group are clearly defined and understood.

Citizenship Behaviors

Voluntary and beneficial actions employees do to help others and the organization, beyond their formal duties.

Favorable Behavior

involves actions or conduct that positively impact situations or relations, often leading to beneficial outcomes or improved perceptions.