Which Is NOT a Part of Good Working Capital Management

question 38

Multiple Choice

Which is NOT a part of good working capital management?

• A) the maintenance of optimal cash balances
• B) the investment of any excess liquid funds in marketable securities that provide the best return possible, considering any liquidity or default-risk constraints
• C) the proper management of accounts receivable
• D) the extension of long-term debt

Differentiate between variable, fixed, and mixed costs and their impact on business operations.

Prepare and interpret a CVP income statement and understand its relevance for management decision-making.

Identify strategies for achieving targeted profit levels through manipulation of sales, costs, and pricing.

Comprehend the assumptions underlying CVP analysis and its limitations.

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Definitions:

Share Beliefs

The act of communicating and exchanging personal values, convictions, or views with others to establish common ground or understanding.

Self-Assured

Characterized by confidence in one's abilities or qualities, often leading to assertive behavior and positive outcomes in interpersonal interactions.

Business Presentations

Formal talks or proposals given to explain business ideas, projects, or products.

Negative Image

A concept or perception that reflects poorly on something or someone, often arising from unfavorable qualities or actions.