Figure 3-3 -Refer to Figure 3-3.Suppose Arturo Is Willing to Trade 6

question 183

Multiple Choice

Figure 3-3

-Refer to Figure 3-3.Suppose Arturo is willing to trade 6 burritos to Dina for each 10 tacos that Dina produces and sends to Arturo.Which of the following combinations of tacos and burritos could Dina then consume,assuming Dina specializes in taco production and Arturo specializes in burrito production?

• A) 100 tacos and 200 burritos
• B) 200 tacos and 130 burritos
• C) 300 tacos and 60 burritos
• D) 340 tacos and 40 burritos

---

Definitions:

Temporary Financing

Short-term loans or credit facilities intended to provide immediate liquidity or cover a short-term funding gap until long-term financing can be arranged.

Short-Term Assets

Assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

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.