Holding All Other Factors Constant, If a Firm Increases Its

question 24

Multiple Choice

Holding all other factors constant, if a firm increases its current assets relative to total assets,

• A) its financing costs will fall.
• B) net working capital will rise.
• C) has no effect on return and reduces risk.
• D) it reduces return and increases risk.

---

Definitions:

Service Quality

The assessment of how well a delivered service matches the customer's expectations.

Credence Properties

Attributes of a product or service that cannot be fully evaluated before purchase and often even after use, typically related to quality or ethical considerations.

Dentistry

The medical field focused on the study, diagnosis, prevention, and treatment of diseases, disorders, and conditions of the oral cavity.

Word-of-mouth Communications

A form of unpaid promotion where satisfied customers recommend products or services to others in their social or professional circles.