Managers Need to Take into Account a Number of Perspectives

question 59

Multiple Choice

Managers need to take into account a number of perspectives when assessing the "first" criteria.The ________ focuses on the vision and strategic direction of the firm and how the nature and timing of projected cash outflows influence that strategy and vision.

• A)competitive perspective
• B)internal perspective
• C)investor perspective
• D)creditor perspective

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Definitions:

Gross Working Capital

The total of all current assets in a company, which includes items such as cash, inventory, and accounts receivable.

Current Assets

Assets expected to become cash in less than one year. Current assets are largely cash, receivables, and inventories.

Current Liabilities

Financial obligations a company is due to pay within one year or within its operating cycle if longer than a year.

EOQ Model

Economic Order Quantity Model; a formula used to determine the optimal order quantity that minimizes total inventory costs.