Increased Needs for Net Working Capital Are

question 32

Multiple Choice

Increased needs for net working capital are:

• A) recognized in pro forma balance sheets.
• B) absorbed into the pro forma plug figures.
• C) typically financed with debt.
• D) ignored due to their great variability.

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Definitions:

Maslow's Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, from basic physical needs to complex self-fulfillment needs.

Psychological Needs

Fundamental human requirements such as love, esteem, belonging, and self-actualization that are essential for mental health and well-being.

Distress

A situation where a person, business, or economy is undergoing severe strain, often due to financial difficulties.

Uncertain Outcome

A situation where the result cannot be predicted with precision due to variables that are not completely known or controllable.