Under a Conservative Approach to Working Capital Management, a Firm

question 62

Multiple Choice

Under a conservative approach to working capital management, a firm tends to hold a relatively ____ proportion of its total assets in the form of current assets.

• A) small
• B) constant
• C) stable
• D) large

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Definitions:

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Title

Legal ownership of property, evidenced by a document or record.

Sale of Goods

A transaction between a buyer and a seller involving the exchange of tangible personal property for payment.

Gift

A voluntary transfer of property or funds from one person to another without expecting anything in return.