Which of the Following Is Not a Condition Under Which

question 74

Multiple Choice

Which of the following is not a condition under which a prudent manager would accept some risk in financing?

• A) Predictable cash-flow patterns
• B) Inventory is highly perishable
• C) Price of inventory is stable
• D) Basic access to capital markets

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Definitions:

Social Norms

Implicit or explicit rules a group holds that influence how its members behave in a typical situation.

External Causes

Factors or circumstances outside the control or influence of an individual that contribute to a particular outcome or situation.

Internal Causes

Causes that originate within an individual, such as personal beliefs, emotions, or motives.

Refute

To prove a statement, theory, or argument to be wrong or false.