Which of the Following Is NOT a Situation That Might

question 96

Multiple Choice

Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?

• A) the firm is going from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline.
• B) the firm is going from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases.
• C) the firm has just sold long-term securities and has not yet invested the proceeds in operating assets.
• D) the firm just won a product liability suit one of its customers had brought against it.
• E) the firm must make a known future payment, such as paying for a new plant that is under construction.

---

Definitions:

Not Require Payment

Refers to services or goods provided without necessitating a monetary exchange from the recipient.

Personal-Selling Process

A series of steps that a salesperson follows to sell a product or service, which usually includes pre-approach, approach, presentation, handling objections, closing, and follow-up.

Pre-Approach

A stage in the selling process where information is gathered about a potential client before making direct contact.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typified as product, price, place, and promotion.