To manage cash efficiently, a company should try to collect payment for delivered products or services __________.

• as quickly as possible

• infrequently

• in a way that maximizes float time

• within 60 days

A business that has too little working capital can take what action?

• Increase short-term financing

• Increase inventory

• Reduce cash on hand

• Reduce credit to consumers

When performing capital budgeting and considering replacement projects, one factor that must be considered is the potential __________ of equipment that is no longer needed.

• depreciation

• salvage value

• sunk costs

• taxation

According to the residual dividend model, what takes priority over distributing dividends?

• Paying off debt

• Increasing share price

• Establishing a target payout ratio

• Financing planned projects