All else equal, which of the following is the most likely to occur if actual sales are much less than forecasted sales?
A) The company will be in a better position to pay down most of its debt.
B) The firm's actual investment in inventory will be unchanged from the amount forecasted.
C) Accounts receivable will rise significantly above the forecast.
D) The company might face a cash flow crunch.
Answer: D
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AutoPROs recalled thousands of tires when several people died in traffic accidents blamed on faulty tires. This is an example of which of the following?
A. reducing the risk
B. a loss-prevention program
C. self-insuring against the risk
D. avoiding the risk
Which of the following is true of the research on trait theory?
A) If you are not born with leadership traits, you can develop them B) No one is born with leadership traits but everyone can develop them C) Traits consist of task behaviors and interpersonal behaviors but you can only develop interpersonal traits D) Possessing certain traits does not translate into leadership effectiveness