In Which of the Following Cases Will a Cash Investment

question 48

Multiple Choice

In which of the following cases will a cash investment in net working capital be most likely?

• A) Inventory levels will be reduced when the project is introduced.
• B) All sales related to the project will be cash sales to a subsidiary.
• C) The project will increase inventory more than accounts payable.
• D) The project will require additional inventory which will be financed by a supplier.

---

Definitions:

Kaizen

A Japanese term meaning "continuous improvement," it's a business philosophy focusing on the ongoing improvement of processes in manufacturing, engineering, and business management.

Keiretsu

A network of interlinked Japanese companies, often bound by cross-shareholdings, collaborating closely for mutual benefit.

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing that signals the need to move materials within a production facility or to move materials from an outside supplier into the production facility.

Meishi

The Japanese term for business cards, which play a significant role in business and social etiquette in Japan.