Which of the Following Statements Is False

question 4

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:

Attending Church

The act of participating in religious services, particularly in a Christian context.

Implicit

Referring to knowledge, attitudes, or feelings that influence an individual's behavior unconsciously, without their aware acknowledgment.

Moderately Positive

Refers to a relationship or correlation that is positive but not strongly so.

Stable

A condition or state that remains unchanged over a period of time, showing reliability or consistency.