Identify the incorrect statement in connection to working capital management:       A. Conservative financing policies use short-term funds to finance only part of fluctuating current assets.         B. Long-term funds are more expensive and more risky than short-term funds .           C. The objectives of working capital management are profitability and liquidity.           D. Permanent current assets should be financed from long-term sources if a moderate policy is adopted.

Q: Sophisticated capital budgeting techniques do not A. examine the size of the initial outlay. B.…

A: Capital budgeting techniques are used to understand the feasibility/acceptability of long term…

Q: Disadvantage of the payback method include: Answer choices are below: A) does not consider cash…

A: The correct answer is D) all of the above. The payback method indeed has several disadvantages. It…

Q: Suppose you finance a project partly with debt, you should neither subtract the debt proceeds from…

A: The statement in question is addressing two key aspects of project financing and cash flow…

Q: Value One category of capital investment evaluation methods does not use present value. The primary…

A: Cash Pay Back Method and Accounting Rate of Return are two Traditional methods of capital budgeting.…

Q: What is the main disadvantage of discountedpayback? Is the payback method of any realusefulness in…

A: The discounted payback method is a method of evaluating the payback period of the investment carried…

Q: Ignoring differences in the useful lives of investments when evaluating ca

A: Capital expenditures are distinct from operating expenditures, which are day-to-day spending…

Q: True or False: It is often impossible to forecast the cash flows from follow-on projects associated…

A: TRUE

Q: Option values are extinguished when they areexercised. How does this influence capital budgeting…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The amount of time needed to recoup one's initial investment is referred to as the payback period,…

A: The cash payback method is a popular technique used by businesses to evaluate the potential…

Q: Which of the following are significant flaws with the Payback Period Method? (Select all that apply)…

A: Payback period method is a capital budgeting method which will help in finding time period within…

Q: How will a decrease in time preferences affect the loanable funds market?   A.   There will be an…

A: Decrease in time preferences tells us that individuals in the economy are more patient and more…

Q: Which of the following is a problem associated with capital budgeting? Select all that apply.…

A: capital budgeting helps organizations make well-informed investment decisions, manage risks, and…

Q: Which of the following statements is false The net present value method considers the time value of…

A: This is based on the principles of capital budgeting tools.   We use different capital budgeting…

Q: interest costs O No answer text provided. O externalities O opportunity costs

A: In the capital budgeting there is need to calculate the incremental cash flow and based on the…

Q: The payback period has the following weaknesses as decision criterion for capital projects:   Uses…

A: Answer:-  Payback period meaning:- Payback period is the amount of time generally required to…

Q: Direct financing allows a borrower to:

A: Direct financing is a financing approaches in which the borrower (or financer) directly purchases…

Q: Which of the following is not considered a complicating factor in capital investment decisions? a.…

A: Capital investment decisions refer to the process of evaluating and selecting long-term investment…

Q: Balance Sheet Insolvency occurs when Liabilities are greater than the Assets resulting in negative…

A: Insolvency Risk: Insolvency risk is a probability that an enterprise cannot satisfy its debt…

Q: If investors are less certain about the economic outlook, they will: Select one: O a. raise capital…

A: Following is the correct answer

Q: Reinvestment risk occurs when a financial institution holds longer-term assets relative to…

A: Reinvesting means putting the profit back into the same scheme.

Q: 95.00% 88.00% Retention held by the owner-x% of bill to owner Retention held from the sub-y% of sub…

A: It is the process of undertaking plans to spend money. This plan enables the business in advance to…

Q: Your client prefers to invest in ETFS because they are cost effective and provide broad…

A: The mutual fund is that fund, scheme or investment vehicle that collects the money from the…

Q: If managers of a company have inside information about the company’s future performances and such…

A: Insider trading refers to having inside information of a firm that is not known to the general…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.