Early in a Period in Which Sales Were Increasing at a Modest

question 1

Multiple Choice

Early in a period in which sales were increasing at a modest rate and plan expansion and start-up costs were occurring at a rapid rate,a successful business would likely experience:

• A) increased profits and no change in financing requirements.
• B) decreased profits and increased financing requirements because of an increasing cash shortage.
• C) decreased profits and decreased financing requirements because of an increasing cash surplus.
• D) increased profits and increased financing requirements because of an increasing cash shortage.

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Definitions:

Personal Capital

Financial assets or investments owned by an individual, contributing to their net worth.

Compensating Differentials

Wage differences across jobs that reflect the desirability of the job attributes, compensating workers for job inconveniences or hazards.

Distributional Justice

The ethical principle concerned with the fair allocation of goods, wealth, or resources among individuals in a society.

John Rawls

An American philosopher known for his theory of justice and contributions to political and moral philosophy.