What are some examples of permanent and temporary investments in current assets?
What will be an ideal response?
Permanent investments in an asset are investments that the firm expects to hold for a period longer than 1 year. Note
that we are referring to the period the firm plans to hold an investment, not the useful life of the asset. For example,
permanent investments are made in the firm's minimum level of current assets, as well as in its fixed assets.
Temporary investments, by contrast, consist of current assets that will be liquidated and not replaced within the
current year. Thus, some part of the firm's current assets is permanent and the remainder is temporary. For example, a
seasonal increase in level of inventories is a temporary investment: the buildup in inventories that will be eliminated
when no longer needed. In contrast, the buildup in inventories to meet a long-term increasing sales trend is a
permanent investment.
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a. The layers of management the needed to be successful b. Sequence of activities involved in the creation, manufacture, and distribution of its products. c. Sequence of activities involved in a firm's research and development activities. d. Whether the industry is horizontally or vertically integrated.
An effective performance evaluation system will ________.
A) promote goal congruence and coordination B) provide feedback C) communicate expectations D) all of the above
Which of the following refers to how much influence one person has on the turn- taking process of speaking?
A. vocal mirroring B. conversational engagement C. activity level D. emphasis
A practice that combines some of the benefits of owning and leasing store locations is the _____
a. net lease b. graduated lease c. sale-leaseback d. maintenance-increase-recoupment lease