Working Capital Management Includes Which One of the Following

question 41

Multiple Choice

Working capital management includes which one of the following?

• A)Deciding which new projects to accept
• B)Deciding whether to purchase a new machine or fix a currently owned machine
• C)Determining which customers will be granted credit
• D)Determining how many new shares of stock should be issued
• E)Establishing the target debt-equity ratio

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Definitions:

Capacity Utilization

Refers to the percentage of total production capacity that is actually being used by a company over a specific period.

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Market Segmentation

The process of dividing a heterogeneous market into smaller, more homogeneous groups of customers with similar needs, characteristics, or behaviors.