Which of the Following Are the Three Reasons That Firms

question 31

Multiple Choice

Which of the following are the three reasons that firms need short-term financing?

• A) seasonalities, permanent working capital, and positive cash flow shocks
• B) seasonalities, funding risk, and permanent working capital
• C) negative cash flow shocks, positive cash flow shocks, and seasonalities
• D) permanent working capital, negative cash flow shocks, and funding risk

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Definitions:

Total Quality Control

Total Quality Control is a management approach focused on embedding quality in every step of the production process through continuous improvement and employee involvement.

Kaoru Ishikawa

A prominent Japanese organizational theorist and engineer, best known for his work in quality management and the invention of the Ishikawa or fishbone diagram.

Employee Involvement

The degree to which employees are encouraged to share their ideas and contribute to decision-making processes in an organization.

Henri Fayol

A French engineer and scholar who developed a general theory of business administration and is known for his 14 principles of management.