Working Capital Is Calculated by Taking

question 179

Multiple Choice

Working capital is calculated by taking

• A)current assets plus current liabilities.
• B)current assets minus current liabilities.
• C)current assets divided by current liabilities.
• D)current assets times current liabilities.

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Definitions:

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another, while keeping the overall satisfaction or utility constant.

Pareto Optimal

The configuration of resource distribution where making one person more prosperous requires making another person less so.