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.

Comprehend the principle of parsimony in theorizing and its application in research.

Distinguish between manipulated and nonmanipulated variables.

Recognize the importance of hypothesis generation, testing, and the relationship to underlying theories.

Grasp the significance of replication in experimental research to validate findings.

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Definitions:

Facilities

Physical buildings and infrastructures that are used for the production, handling, or storage of goods.

Supply Chain

A constellation of groups, individuals, activities, information, and supplies engaged in the process of delivering a product or service from the producer to the purchaser.

High Tariffs

Elevated taxes imposed on imported goods, aimed at protecting domestic industries from foreign competition.

Manufacturing Plants

Facilities where goods are produced in large quantities through the combination of workers, machinery, and processes.