The Effects of a Change in Sales on Working Capital

question 103

Multiple Choice

The effects of a change in sales on working capital will be seen in which section of a financial plan?

• A) Output section
• B) Pro forma financial statements
• C) Planning model
• D) Sources and uses of funds

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Definitions:

External Rewards

Incentives provided by an external source, such as money or praise, that motivate individuals to perform certain tasks.

Tension

A mental or physical state resulting from stress or strain, often characterized by feelings of anxiety or discomfort.

Primary Drives

States of tension or arousal that arise from a biological need and are unlearned.

Reduction

In psychology, it refers to simplifying a complex phenomenon by breaking it down into its component parts for easier study or understanding.