All Else Equal, Which of the Following Is the Most

question 129

Multiple Choice

All else equal, which of the following is the most likely to occur if actual sales are much less than forecasted sales?

• A) The company will be in a better position to pay down most of its debt.
• B) The firm's actual investment in inventory will be unchanged from the amount forecasted.
• C) Accounts receivable will rise significantly above the forecast.
• D) The company might face a cash flow crunch.

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Definitions:

Assumptions

Assumptions are underlying beliefs or ideas that people take for granted without verification.

Artifacts

Objects made by human beings, typically with cultural or historical interest; in organizational culture, these can also include symbols, rituals, and practices.

Organizational Culture

Pertains to the shared beliefs, values, norms, and practices that shape the social and psychological environment of a business or organization.

Countercultures

Subcultures or groups within a society that significantly differ and may oppose certain aspects of the dominant culture or mainstream values.