Which One of the Following Is a Working Capital Decision

question 22

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 our firm?
• C) What is the cost of debt financing?
• D) Which type of debt is best suited to finance our inventory?
• E) How much cash should the firm keep in reserve?

---

Definitions:

Bananas

A tropical, crescent-shaped, yellow fruit that is soft and sweet when ripe, widely consumed and grown in humid regions around the world.

Aesthetic Importance

The value or significance of something based on its beauty or emotional impact, often related to the arts or nature.

Wildflowers

Wild plants that grow naturally without intentional human planting or cultivation.

Ecological Importance

The significance of a natural element or system in maintaining balance and supporting life in an ecosystem.