Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)A firm's cash cycle is the length of time between when the firm pays cash to purchase its initial inventory and when it receives cash from the sale of the output produced from that inventory.
• B)The longer a firm's cash cycle,the more working capital it has,and the more cash it needs to carry to conduct its daily operations.
• C)Most firms buy their inventory on credit,which increases the amount of time between the cash investment and the receipt of cash from that investment.
• D)Any reduction in working capital requirements generates a positive free cash flow that the firm can distribute immediately to shareholders.

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Definitions:

Ethical Decision

A choice made based on moral principles and values, considering the well-being of others and the integrity of the decision maker.

Courses of Action

Different strategies or pathways that can be taken to achieve a goal or resolve a problem.

Ethics Codes

Formal documents outlining the principles and expected conduct for professionals within an organization or profession, intended to guide ethical decision-making.

Ethical Issues

Concerns or problems regarding what is morally right or wrong in a given situation.