According to Systems Theory,high Levels of Interconnectedness Can Lead To

question 19

Multiple Choice

According to systems theory,high levels of interconnectedness can lead to:

• A)More pressure on governments to regulate the economy and increase their interventionism
• B)A spiral of economic catastrophes and business failures
• C)Greater stability in the whole system
• D)A tendency for small initial disturbances to become amplified in unpredictable ways

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to collect payments from its credit sales, indicating the efficiency of its credit and collection policies.

Cash Balance

A measure of the amount of cash that a company, or an individual, has on hand at any given time.

Short-Term Loan

A loan scheduled to be repaid in less than a year, often used for immediate cash flow needs.

Annual Net Cash Inflow

The total amount of cash that a business generates in a year, after all expenses and taxes are subtracted from total cash inflows.