Each of the following causes a cash flow problem except
A) a large proportion of credit sales.
B) embezzlement of company funds.
C) unexpected slow selling seasons.
D) slow-paying customers.
E) customers who pay early.
Question 2 - A growing number of companies are organizing their workforces into teams.
Indicate whether the statement is true or false
Question 3 - One drawback of exchange traded funds (ETFs) is that investors:
A) are not able to diversify their investments.
B) have to pay brokerage commissions every time they buy or sell shares.
C) are forced to pay higher fees as compared to mutual funds.
D) can buy or sell shares only after the major stock exchanges are closed.
Question 4 - The main reasons small businesses fail are poor management skills on the part of owners, inadequate capital, and poor planning.
Indicate whether the statement is true or false
Question 5 - MCB Company experienced a significant increase in sales as a result of its new promotional campaign. Yesterday, however, it realized that because most of those sales were on credit, it did not have enough money in the bank to pay this month's bills. MCB can take care of this situation temporarily by
A) obtaining long-term financing.
B) disallowing credit sales.
C) selling commercial drafts.
D) obtaining short-term financing.
E) issuing stock.
Question 6 - Employee stock ownership plans (ESOPs) provide considerable employee incentive and increase employee involvement.
Indicate whether the statement is true or false
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