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.

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Definitions:

Horizontal Fit

The alignment and integration of an organization's practices, processes, and strategies in a way that they support and reinforce each other.

Innovative Behaviours

Actions or tendencies of individuals or organizations geared towards the discovery, creation, and implementation of new ideas, products, or processes.

Compensation Strategies

The planning and implementation methods used by businesses to reward employees financially for their work and performance.

Contingency View

A management perspective emphasizing that organizational strategies and structures should vary according to the situation or environment.