What Is the Effect on Net Working Capital If the Corporation

question 19

Multiple Choice

What is the effect on net working capital if the corporation decides to increase their investment in inventory and pay for it with cash?

• A) increase in NWC.
• B) decrease in NWC.
• C) depends on the amount of the investment.
• D) no effect.
• E) depends on the amount of cash.

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Definitions:

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A concept referring to a mindset or presence that is optimistic, uplifting, and supportive in nature, often contributing to a more positive environment.

Productivity

The efficiency at which an individual or organization can convert inputs into outputs, often measured in terms of work or goods produced.

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The degree to which a product or service meets the customer's expectations and the customer's happiness with the purchase.