Which of the Following Is NOT a Situation That Might

question 123

Multiple Choice

Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?

• A) The firm is going from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline.
• B) The firm is going from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases.
• C) The firm has just sold long-term securities and has not yet invested the proceeds in operating assets.
• D) The firm just won a product liability suit one of its customers had brought against it.
• E) The firm must make a known future payment, such as paying for a new plant that is under construction.

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Definitions:

Antistatic Bag

A plastic enclosure that protects electronic gear from being affected by static charges if the equipment is left exposed.

Motherboards

The main circuit board of a computer, to which all other components connect directly or indirectly.

Toner

The combined particles in a laser toner cartridge that produce an image when fused onto paper. Harmful if inhaled. Messy if spilled.

Ignite

Often used in a technological or business context to denote the start or launch of projects, ideas, innovations, or high-energy events aimed at stimulating interest and activity.