Which One of the Following Is a Working Capital Decision

question 44

Multiple Choice

Which one of the following is a working capital decision?

• A)How should the firm raise additional capital to fund its expansion?
• B)What debt-equity ratio is best suited to the firm?
• C)What is the cost of debt financing?
• D)Which type of debt is best suited to finance the inventory?
• E)How much cash should the firm keep in reserve?

---

Definitions:

Quantitative Restriction

Measures imposed by governments to limit the quantity of goods that can be imported or exported over a specified period.

Luxury Automobiles

High-end cars that offer superior performance, comfort, and amenities, often associated with status, exclusivity, and a high price point.

Quota

A fixed share or a specific limit on goods or services, often imposed by governments on imports or exports.

Importing

The process of bringing goods or services into a country from abroad for sale.