Answer the following statements true (T) or false (F)
1. The risk of the conservative funding requirements is low because of its high level of net working capital, and the fact that the strategy does not require a firm to use any of its limited short-term borrowing capacity.
2. Under a conservative funding strategy, the firm funds both its seasonal and its permanent requirements with long-term debt.
3. When implementing the cash management strategies, a firm should avoid damaging a firm's credit rating by overstretching accounts payable.
4. Because managing inventory is just like managing any other investment, decisions about the level of inventory should be guided by the effect of inventory levels on sales.
5. The ABC system is an inventory management technique for determining the optimal order quantity for an item of inventory.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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Fill in the blank(s) with correct word
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A. 0.025 B. 0.040 C. 0.020 D. 0.030
Budget slack is a condition in which
a. demand is low at various times of the year. b. excess machine capacity exists in some areas of the plant. c. there is an intentional overestimate of expenses or an underestimate of revenues. d. managers grant favored employees extra time off.
An occupier of property owes no duty to trespassers who come on their property
Indicate whether the statement is true or false