Which of the Following Actions, All Other Things Being Equal

question 52

Multiple Choice

Which of the following actions, all other things being equal, will increase the need for a company to borrow money in the short-term?
I. Extending more credit to customers
II. Increasing inventory turnover
III. Expensing advertising expenses rather than capitalizing them
IV. Contributing more to pension plan

• A) I, II, III
• B) I and III
• C) I, III and IV
• D) I and IV

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Definitions:

Reactive Change

Modifications or adjustments made in response to external pressures or unforeseen events, rather than through proactive planning.

Lay Off

The temporary or permanent suspension or termination of employment of an employee or group of employees due to business reasons like lack of work or economic downturns.

Transformational Change

A comprehensive shift in the culture, processes, and operations of an organization, aiming for significant improvements.

Proactive Change

The strategic approach of initiating improvements or transformations within an organization or system before challenges or problems necessitate them.