Asked by
Gillian Tamia
on Dec 01, 2024Verified
An aggressive working capital policy:
A) uses more short-term financing than long-term.
B) uses short-term financing to support only the peaks of temporary working capital.
C) supports a portion of permanent working capital with short-term financing.
D) Both a & b
E) Both a & c
Aggressive Working Capital Policy
A strategy emphasizing minimal cash and inventory levels and maximizing short-term liabilities to fund operations and investments.
Permanent Working Capital
Permanent Working Capital is the minimum amount of capital that a company needs to operate effectively and continuously over the long term.
- Acquire knowledge about the role of working capital in shaping a firm's financial practices.
- Understand the significance of aggressive working capital management practices and the risk they entail.
Verified Answer
TW
Learning Objectives
- Acquire knowledge about the role of working capital in shaping a firm's financial practices.
- Understand the significance of aggressive working capital management practices and the risk they entail.
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