Which of the Following Statements Is Not True

question 18

Multiple Choice

Which of the following statements is not true?

• A) Net working capital is the difference between short-term assets and short term liabilities.
• B) Short-term financing deals with the management of short-term liabilities and short-term assets.
• C) Short-term financing is concerned with determining reasonable amounts of cash to hold, which customers should get credit and others related issues.
• D) Net working capital does not utilize the concept of present value since all flows are short-term.

---

Definitions:

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and plentifully produce, based on their factor endowments of labor, land, and capital.

Trade Flows

The movement of goods and services between countries or regions, highlighting the patterns and volumes of trade.

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses, which can affect its comparative advantage in trade.

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into a country.