Which One of the Following Statements Is Correct

question 29

Multiple Choice

Which one of the following statements is correct?

• A)Shareholders' equity is the residual value of a firm.
• B)Net working capital must be a positive value.
• C)An increase in cash reduces the liquidity of a firm.
• D)Equipment is generally considered a highly liquid asset.
• E)Depreciation increases total assets.

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Definitions:

Economic Profit

The difference in total funds acquired and total expenditures, both straightforward and oblique, for a corporation.

Pure Monopolist

A market structure characterized by a single seller selling a unique product with no close substitutes, having complete control over its price.

Maximize Profits

The goal of increasing a firm's net income by effectively managing costs, pricing, production, and sales strategies.

Minimize Losses

Strategies or actions taken to reduce the amount of money or resources wasted or not gained in operations or transactions.