Whenever a new product competes against a company's already existing products and reduces the sales of the other products, net working capital increases occur

Indicate whether the statement is true or false.


Answer: FALSE
Explanation: Whenever a new product competes against a company's already existing products and reduces the sales of these other products, EROSION OCCURS. If sales decrease, then it is more likely that there will be a decrease in net working capital (as opposed to an increase).

Business

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