Which of the Following Is Not True About Investment Bases

question 45

Multiple Choice

Which of the following is not true about investment bases associated with return on investment (ROI) ?

• A)Involves decreasing idle cash.
• B)Involves managing credit judiciously.
• C)Involves determining proper inventory levels.
• D)Managers spend carefully on long-term assets.
• E)Managers never have benefits when they reduce long-term assets.

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Definitions:

Purely Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Federal Food Distribution

Programs and services run by the government to distribute food to the needy, schools, and other institutions to ensure food security.

Agricultural Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, produced through farming activities.