Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A)A firm has a greater likelihood of needing an unexpected loan when its cash flows are relatively constant over time.
• B)The cost of borrowing affects the target cash balance of a firm.
• C)Management's desire to maintain a low cash balance has no effect on the borrowing needs of a firm.
• D)The target cash balance increases as the interest rate rises.
• E)The target cash balance decreases as the order costs increase.

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Definitions:

Active Listening Skills

The ability to fully concentrate, understand, respond to, and remember what is being said in conversation.

Communication Tool

A medium or instrument that facilitates the exchange of information or messages between individuals or groups.

E-mail

A system for sending messages from one individual to another via telecommunications links between computers or mobile devices.

Effective Listening

The practice of actively paying attention, understanding, remembering, interpreting, evaluating, and responding to what is being said.