In the average, publicly traded firm, which of the following accounts seems to have a negative relationship with sales?

Question

Quizplus · Accepted Answer

Long-term investments other than PP&E (property, plant, and equipment) tend to have a negative relationship with sales in the average publicly traded firm. This is because companies may invest more in long-term investments when they have excess cash or when their core business activities (which generate sales) are not providing sufficient growth opportunities. Thus, higher sales might lead to lower allocations in such investments as the firm focuses more on its core operations.

In the Average, Publicly Traded Firm, Which of the Following