Most Companies

question 80

Multiple Choice

Most companies

• A)are not concerned with the management of working capital because cash flows are good.
• B)strive for a balance between current assets and current liabilities.
• C)try to maintain protection from the creditors by keeping only a small amount of cash available.
• D)agree that working capital of $3,000,000 is sufficient for business operations.

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Definitions:

Lifetime Annuity Providers

Companies that offer financial products providing a guaranteed income stream for the lifetime of the policyholder, typically used for retirement planning.

Health Insurance Providers

Health Insurance Providers are companies or organizations that offer plans aimed at covering the costs of medical care for insured individuals or entities.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the return of an investment by its cost.

Nearest Hundred Thousand

Rounding a number to the closest increment of one hundred thousand.