When a Company Faces Uncertainty It Is Common for Managers

question 8

Multiple Choice

When a company faces uncertainty it is common for managers to attempt to build up cash reserves.Which of the following is an important advantage of having large cash balances on hand?

• A)Cash balances pay significant interest, enabling a company to receive additional revenue.
• B)Having large cash balances enables a company to pay its bills even when sales are dropping.
• C)A cash account will increase in value when equity markets go up in value.
• D)Corporate shareholders generally approve of large corporate cash balances, believing that corporate managers are acting prudently.

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Definitions:

Substance/Medication-Induced Sexual Dysfunction

A specific substance presumed to cause the sexual dysfunction.

Heroin Addiction

A severe substance use disorder characterized by a dependence on heroin, affecting physical and mental health.

Erection and Ejaculation

Physiological phenomena in male sexuality where erection is the stiffening of the penis, and ejaculation is the release of semen.

Erectile Disorder

A condition characterized by the consistent difficulty in achieving or maintaining an erection sufficient for sexual activity.