Answer:
E. How much cash should the firm keep in reserve?
Explanation:
- The working capital is the capital decision that is a decision that the firms take to combine the policies and the techniques for the management. And also state how the form should keep and use its resources or reserves and also is a measure of the liquidity of the firm and gives the inventors more information to the analysis.
Answer:
Correct option is (d)
Explanation:
Current liabilities are part of obligations of the organization that it needs to meet within one year. Current maturities of long term debt represents that part of long term debt such a bonds or loans that need to be paid of in the current financial year.
It is shown as a separate item in the balance sheet as it is paid off using highly liquid asset such as cash.
Answer:
D. Market maturity
Explanation:
Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility vehicles (SUVs) in all of its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, General Motors offered rebates of up to $5,000, or no-interest financing, on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions.
General Motors is currently operating in the Market maturity stage of production life cycle.
It’s B, a whistleblower reports the business
Answer:
The correct answer is letter "B": required rate of return.
Explanation:
The required rate of return helps investors determine where to invest and allows them to compare their investment returns to all other choices. They can do this by taking the <em>Risk-Free Rate of Return, Inflation, </em>and <em>Liquidity</em> into account. The required risk of return is subjective and varies from investor to investor.
<em>The lower the required risk of return implies investors are confident in the stock providing them profits which is a signal of stability of that asset that will be interpreted in an increase in the stock value.</em>
