Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A) Firms with seasonal cash flows may find themselves with a surplus of cash during some months that is sufficient to compensate for a shortfall during other months. However, because of timing differences, such firms often have short-term financing needs.
• B) A company forecasts its cash flows to determine whether it will have surplus cash or a cash deficit for each period.
• C) Positive cash flow shocks cannot create short-term financing needs.
• D) When sales are concentrated during a few months, sources and uses of cash are also likely to be seasonal.

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Definitions:

Using Rewards

A technique in which incentives are provided to encourage certain behaviors or outcomes.

Bribing People

The act of giving someone money or other valuables to persuade them to do something, usually something illegal or unethical.

Intrinsic Motivation

Intrinsic motivation refers to performing an activity for its inherent satisfaction or pleasure, rather than for some separable consequence or reward.

Extrinsic Motivation

A form of motivation that comes from external rewards, such as money, fame, grades, and praise.