The Aggressive Financing Strategy Is Risky in Two Respects: the Firm

question 218

Multiple Choice

The aggressive financing strategy is risky in two respects: the firm operates with a low level of ________, and the firm has only a limited amount of ________ capacity.

• A) current liabilities; short-term borrowing
• B) net working capital; short-term borrowing
• C) current assets; long-term borrowing
• D) net working capital; long-term borrowing

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Definitions:

Need For Workers

The demand for labor or employees by businesses and industries to perform tasks and produce goods and services.

Productivity Of Labor

A measure of economic performance that calculates the output of goods and services produced per unit of labor input.

Human Capital

The combined abilities, expertise, or other non-physical resources that individuals possess, which can generate economic benefits for the individuals themselves, their employers, or the society.

Rate Of Investment

The percentage of return achieved on an investment over a given period of time.