Which of the Following Is True About Initial Working-Capital Investment

question 102

Multiple Choice

Which of the following is true about initial working-capital investment?

• A)Initial investments in plant and equipment are usually accompanied by additional investments in working capital.
• B)Initial investments in plant and equipment are never accompanied by additional investments in working capital.
• C)Additional investments in working-capital investments are never in the form of a current asset.
• D)Investments in initial machines occur at the end of the product's life.
• E)Initial investments exclude cash assets.

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Definitions:

Effective Market

A market scenario where prices reflect all available information, allowing for efficient allocation of resources and securities pricing.

Government Control

The involvement and regulation by governmental bodies in certain areas of the economy or specific industries to enforce policies and laws.

Consumer Surplus

The disparity between the total payment consumers are willing and have the ability to make for a good or service, and the payment they indeed make.

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.