Occasionally, a Company Will Encounter Circumstances in Which Cash Flows

question 50

Multiple Choice

Occasionally, a company will encounter circumstances in which cash flows are temporarily negative for an unexpected reason. We refer to such a situation as a ________.

• A) liquidity shock
• B) negative cash flow shock
• C) negative liquidity shock
• D) cash crunch

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Definitions:

External Attribution

The process of attributing the cause of one's own or others' behavior to external factors or situations.

Stable External

A term used to describe factors outside an individual that are consistent and unchanging, influencing behavior or circumstances.

Unstable External

This refers to external attributions for behavior that are variable or subject to change, such as luck or temporary circumstances.

Stable Internal

A term describing traits, beliefs, or motivations within an individual that are consistent over time and across different situations.