The Flexible Current Asset Management Strategy Calls for Management to Invest

question 31

True/False

The flexible current asset management strategy calls for management to invest large amounts in cash, short-term investments, and inventory.

---

Definitions:

Directly Proportional

A relationship between two variables where if one increases, the other one also increases at a constant ratio.

Inversely Proportional

A relationship between two variables where when one variable increases, the other decreases at a rate that maintains the constant product of the two variables.

Power Source

A component or system that provides electrical power to a circuit or device.

Electrostatic Attraction

The force of attraction between oppositely charged particles.