Which of the Following Statements Regarding Investment in Working Capital

question 29

Multiple Choice

Which of the following statements regarding investment in working capital is incorrect?

• A) An investment in working capital, unlike an investment in plant and equipment, represents a positive cash flow when the investment is made.
• B) Net working capital cash flow is measured by the change in working capital, not the level of working capital.
• C) Net working capital may change during the life of a project.
• D) Working capital is generally recovered at the end of a project.

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Definitions:

Lateral Hypothalamus

An area of the brain involved in hunger and thirst regulation; damage or stimulation of this area can lead to changes in eating and drinking behavior.

Performance/Avoidance

Refers to the motivation aimed at achieving success and avoiding failure.

Goal Orientation

A mindset that focuses on setting, pursuing, and achieving objectives.

Set Point

The weight the body normally maintains when one is trying neither to gain nor to lose weight.