Which of the Following Statements About Total Capital Requirement Is

question 2

Multiple Choice

Which of the following statements about total capital requirement is least likely to be correct for a profitable firm?

• A)requirements remain constant over time
• B)seasonal variations are often experienced
• C)the trend is often upward-sloping
• D)a portion of working capital is permanent

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Definitions:

Sole Proprietor

A business structure where a single individual owns, manages, and bears the responsibilities for all aspects of the business.

Limited Liability

A legal status where a person's financial responsibility is limited to a fixed amount, usually the value of their investment in a company or partnership.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm that constitutes the basis for a claim by the injured party.

Vicariously Liable

Legal responsibility of one party for the actions of another party, typically in an employer-employee relationship.