Holding Everything Else Constant, an Increase in Cash ________ a Firm's

question 50

Multiple Choice

Holding everything else constant, an increase in cash ________ a firm's net debt.

• A) will decrease
• B) will have no impact on
• C) will increase
• D) may increase or decrease

---

Definitions:

Valid Contract

An agreement between two or more parties that is enforceable by law, having all essential elements like offer, acceptance, and consideration.

Injustice

A situation or action that is perceived as unfair, unequal, or undeserving.

Preexisting Duty Rule

In contract law, a principle that states if someone is already legally required to perform a certain duty, promising to perform that duty is not sufficient consideration for a new contract.

Consideration

The value (such as money, services, or goods) promised in a contract that motivates parties to enter into the agreement.