A Firm's Permanent Working Capital Refers to The

question 34

Multiple Choice

A firm's permanent working capital refers to the:

• A) difference between current assets and current liabilities.
• B) minimum difference between current assets and current liabilities.
• C) portion of net working capital that is financed from long-term sources.
• D) amounts that must be held to meet debt covenants.

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Definitions:

Economic

Pertains to the production, distribution, and consumption of goods and services, as well as the management of money and resources in a society.

Enlightenment

A philosophical movement of the 18th century, emphasizing reason, individualism, and skepticism of traditional doctrines.

Human Reason

The capacity of the human mind to analyze situations, make judgments, and solve problems.

Socialism

An economic institution characterized by state ownership and management of the basic industries.