The Principle Factors Affecting the Quality of Working Capital Are

question 61

Multiple Choice

The principle factors affecting the quality of working capital are:

• A) The nature of the current assets.
• B) The length of time to convert current assets into cash.
• C) Both the nature of the current assets and the length of time to convert current assets into cash.
• D) Neither the nature of the current assets nor the length of time to convert current assets into cash.

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Definitions:

Break-Even Quantity

The quantity of product sold at which total revenues equal total costs, resulting in no profit or loss.

Compensation

Remuneration or payment given to someone in exchange for their work or a service provided.

Salary Increase

An upward adjustment in an employee's pay rate, often awarded for performance, longevity, or changes in market conditions.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the good’s sensitivity to price changes.