Which of the Following Companies Is Most Likely to Have

question 16

Multiple Choice

Which of the following companies is most likely to have the greatest need for short-term financial planning?

• A) a company that mines sand for use in glass-making
• B) a company that manufacturers condiments such as ketchup
• C) a company that produces advertisements for roadside billboards
• D) a company that provides catering services for weddings

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Definitions:

Nonmonetary Exchange

A transaction in which businesses or individuals trade goods or services without the use of money.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's profits and a right to vote on management issues.

Stock Split

An action a company takes to divide its existing stock into multiple shares to boost the liquidity of the shares.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the current value assigned by the market.