A Firm Starts Its Year with a Positive Net Working

question 75

Multiple Choice

A firm starts its year with a positive net working capital.During the year,the firm acquires more short-term debt than it does short-term assets.This means that:

• A)the ending net working capital will be negative.
• B)both accounts receivable and inventory decreased during the year.
• C)the beginning current assets were less than the beginning current liabilities.
• D)trade payables increased and inventory decreased during the year.
• E)the ending net working capital can be positive,negative,or equal to zero.

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Definitions:

Coercive Power

The ability to compel or force someone to perform a certain action through threats or punishment.

Reward Power

The ability of an individual to influence others' behavior by controlling the distribution of rewards.

Expert Power

The influence and authority one possesses as a result of one's expertise, skills, or knowledge.

Referent Power

A form of power that stems from being admired, respected, and liked by others.