Which of the Following Statements Is CORRECT

question 13

Multiple Choice

Which of the following statements is CORRECT?

• A) "Window dressing" is any action that improves a firm's fundamental, long-run position and thus increases its intrinsic value.
• B) Borrowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing." Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing."
• C) Borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing."
• D) Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is an example of "window dressing."
• E) Using some of the firm's cash to reduce long-term debt is an example of "window dressing."

---

Definitions:

Low LPC Leader

Refers to leaders who are task-oriented and prioritize work and tasks over interpersonal relationships, as determined by the Least Preferred Coworker (LPC) scale in Fiedler's Contingency Model.

Unfavorable Situations

Circumstances that are detrimental, disadvantageous, or not conducive to success.

Charismatic

Possessing a natural ability to attract, inspire, or influence people through personal charm and appeal.

Transformational Leaders

Individuals who inspire and motivate others to achieve extraordinary outcomes by embracing change, fostering innovation, and empowering followers.