The Three Main Working Capital Strategies-Aggressive, Conservative, and Moderate-Differ Primarily

question 65

Multiple Choice

The three main working capital strategies-aggressive, conservative, and moderate-differ primarily in the:

• A)relative amounts of short-term debt a firm uses.
• B)minimum level of permanent current assets a firm maintains.
• C)relative amount of long-term debt versus equity that a firm uses to finance its permanent current assets.
• D)average level of temporary current assets a firm maintains.
• E)amount of trade credit a firm uses.

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Definitions:

Victor Vroom

A renowned management theorist known for his work on expectancy theory which explains how individuals choose behaviors based on expected outcomes.

Expected Level of Task Performance

The anticipated standard or degree of accomplishment that an individual or group should achieve in executing a specific task or duty.

Hard Work

The extensive effort and dedication put into tasks to achieve goals, often characterized by long hours and high levels of commitment.

Trait Theories

Theories in psychology and leadership that suggest certain personality traits or qualities are inherently linked to effective leadership or success.