In Working Capital Management, Risk Is Measured by the Probability

question 221

Multiple Choice

In working capital management, risk is measured by the probability that a firm will become

• A) liquid.
• B) technically insolvent.
• C) unable to meet long-term obligations.
• D) less profitable.

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Definitions:

Internal Locus of Control

A belief that one has control over their own life and outcomes, as opposed to external forces having that control.

Free Will

The power or ability to make choices free from certain constraints, suggesting a form of autonomy or self-determination.

Type A Personality

Type A personality is characterized by a constant feeling of working against the clock and a strong sense of competitiveness.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood glucose; plays a key role in the body's stress response.