Final answer:
The statement about Starboard and Advance Auto is false. Starboard's desire would be concerning strategies on how to manage or improve working capital, potentially involving accounts payable and inventory ratios, but not as directly stated in the question. Option b is correct.
Step-by-step explanation:
It is false that Starboard wanted Advance Auto to improve its working capital requirements by increasing its accounts payable-to-inventory ratio.
The accounts payable-to-inventory ratio is a financial metric that measures how much a company owes its suppliers relative to its inventory levels. Increasing this ratio typically means a company is taking longer to pay its suppliers which could potentially improve working capital.
Understanding financial market mechanisms can provide insights into different scenarios:
- Changes in interest rates can influence the quantity of loans by making borrowing more or less attractive.
- Economic confidence and stability can also impact loan quantity, as seen in historical contexts such as the Panic of 1819.
- In agriculture, sharecroppers often paid rent with a portion of their crops, indicating economic arrangements relevant to working capital and asset management.
Hence, Option b is correct.