Some Fundamental Concepts That Nonfinancial Managers Need to Understand Include

question 94

Multiple Choice

Some fundamental concepts that nonfinancial managers need to understand include:

• A)the ability to assess day-to-day cash management.
• B)the ability to assess future financing requirements.
• C)the ability to understand the role of capital markets in raising long-term funds.
• D)All of the above.

---

Definitions:

Instinct Theory

A view that explains human behavior as motivated by automatic, involuntary, and unlearned responses.

Homeostasis

The ability of a living organism to regulate its internal environment to maintain a stable, constant condition despite external changes.

Drive-Reduction Theory

The idea that a physiological need creates an aroused tension state (a drive) that motivates an organism to satisfy the need.

Maintain Homeostasis

The process by which living organisms regulate their internal environment to stabilize health and functioning, despite external changes.