Regarding the Use of Funds Generated Within the Firm

question 181

Multiple Choice

Regarding the use of funds generated within the firm:

• A) Reinvesting cash generated from operations is usually more expensive than borrowing money.
• B) A company with a product that has significant growth potential should invest the earnings from that product to salvage declining products.
• C) Indirect distribution usually requires more investment capital for a producer than does direct distribution.
• D) When finances are tight, companies should look for strategy alternatives that help get a better return on money already invested.
• E) All of these.

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Definitions:

Immanent Justice

The belief, often held by children, that moral behavior is immediately rewarded and immoral behavior is immediately punished.

Autonomous Morality

The second stage of moral development in Piaget’s theory, displayed by older children (about 10 years of age and older). The child becomes aware that rules and laws are created by people and that, in judging an action, one should consider the actor’s intentions as well as the consequences.

Punishment

A consequence aimed at reducing a behavior, typically involving unpleasant or undesirable outcomes for the recipient.

Immanent Justice

The belief often held by children that moral wrongs will be immediately punished and virtues rewarded, regardless of human intervention.