The Purpose of Managing Current Assets and Current Liabilities Is

question 254

Multiple Choice

The purpose of managing current assets and current liabilities is to

• A) achieve as low a level of current assets as possible.
• B) achieve as low a level of current liabilities as possible.
• C) achieve a balance between profitability and risk that contributes to the firm's value.
• D) achieve as high a level of current liabilities as possible.

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Definitions:

Overcoming Obstacles

The process or act of resolving or surpassing barriers or difficulties to achieve a goal.

Transtheoretical Model

A theory of behavior change that evaluates an individual's readiness to act on a new healthier behavior, and provides strategies or processes to guide the individual.

Contemplation Stage

The stage in which people are aware of a problem and are thinking about overcoming it but have not yet made a commitment to take action.

Action Stage

A phase in the Transtheoretical Model of behavioral change where individuals are actively making modifications to their lifestyle or behavior to overcome a problem.