Which of the Following Statements Is NOT True

question 63

Multiple Choice

Which of the following statements is NOT true?

• A) Gross working capital refers to the funds invested in a company's current liabilities.
• B) Net working capital (NWC) refers to the difference between current assets and current liabilities.
• C) Working capital efficiency refers to the length of time between when a working capital asset is acquired and when it is converted into cash.
• D) Working capital management involves making decisions regarding the use and sources of current assets.

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Definitions:

Non-Disclosure Clauses

Provisions in a contract that prohibit the sharing of confidential information with unauthorized parties.

Fiduciary Duty

A duty to act in the best interests of another; such duty may arise between directors and officers and the corporation they serve, between business associates including senior employees and their employer, between agents and their principals, and between partners, also called utmost good faith.

Passing-Off

The tort of misleading the public about the identity of a business or product.

Employment Contract

A formal agreement specifying the terms and conditions of the relationship between an employer and an employee.