Which of the Following Expenses Involves the Working Capital a Company

question 19

Multiple Choice

Which of the following expenses involves the working capital a company needs for operation?

• A) The money required to purchase land in order to set up a plant
• B) The money required to purchase equipment necessary to begin operations
• C) The money required to pay the salary of employees
• D) The money required to acquire a competing firm
• E) The money required to set up the power grid for a new manufacturing plant

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Definitions:

Formal Decision-making Process

A structured approach to decision-making that involves systematic steps such as identifying a problem, generating alternatives, evaluating alternatives, and making a decision.

Stage-Gate®process

A project management approach that divides the process of bringing a new product to market into distinct stages separated by decision-making checkpoints or "gates."

Cross-functional Team

A group comprised of members from different functional areas of an organization, working together towards a common goal.

Salable Products Services

Products and services that are appealing to consumers and capable of being sold in the marketplace.