A Firm Following an Aggressive Approach to Working Capital Policy

question 23

Multiple Choice

A firm following an aggressive approach to working capital policy will finance all of the fixed assets with __________,and some of the firm's permanent current assets will be financed with __________.

• A) short-term nonspontaneous sources of funds; long term capital
• B) commercial paper; long term capital
• C) long term capital; short-term nonspontaneous sources of funds
• D) long term capital; corporate bonds
• E) short-term nonspontaneous sources of funds; corporate bonds

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Definitions:

Internal Culture

The shared values, beliefs, and norms that influence the behavior and interactions of members within an organization.

Organisational

Pertaining to the structure and dynamics of an organization, including its processes, functions, and culture.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Natural Environment

The physical and biological factors along with their chemical interactions that affect an ecosystem or the earth as a whole.