Permanent Net Operating Working Capital Reflects the Fact That Net

question 63

True/False

Permanent net operating working capital reflects the fact that net operating working capital does not shrink to zero even when a business is at its seasonal or cyclical low.Thus,permanent net operating working capital represents a minimum level of net operating working capital that must be financed.

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Definitions:

Balance Of Payments

A record of all economic transactions between residents of a country and the rest of the world in a given period.

Foreign Currencies

Money or other forms of payment issued by a country other than one's own, used to facilitate international transactions.

Balance Of Trade

The difference between the value of a country's exports and the value of its imports over a certain period, reflecting the country's trade surplus or deficit.

Current Account Deficit

When a country's total imports of goods, services, and transfers exceed its total exports.