What Is NOT a Smart Way to Improve a Company

question 7

Multiple Choice

What is NOT a smart way to improve a company cash position?

• A) Collect prepayments from customers
• B) Reduce inventory to just what you need for immediate production
• C) Try to replace capital purchase with leases or rentals
• D) Prepaying expenses

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.

Complement

A good whose demand increases when the price of another good decreases. Examples include a parking lot and shopping mall or a hamburger and a hamburger bun.