In General, the More Net Working Capital a Firm Has

question 241

Multiple Choice

In general, the more net working capital a firm has, ________.

• A) the greater its risk
• B) the lower its risk
• C) the less likely are creditors to lend to the firm
• D) the lower its level of long-term funds

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Definitions:

Lenticels

Porous swellings of cork cells in the stems of woody plants; facilitate the exchange of gases.

Pith Rays

Tissue in plants that extends radially across the stem or trunk, involved in the storage and transport of nutrients horizontally within the structure.

Heartwood

The dense, inner part of a tree trunk, yielding the hardest wood.

Sapwood

The younger, softer, outermost layers of wood between the heartwood and the bark, functioning in the transport of water and nutrients.