What Is Permanent Working Capital

question 58

Multiple Choice

What is permanent working capital?

• A)the amount that a firm must keep invested in its short-term assets to support its continuing operations
• B)the difference between the actual level of investment in short-term assets and the amount that a firm must keep invested in its short-term assets to support its continuing operations
• C)the amount that a firm keeps invested in its short-term assets to support its continuing operations which is financed by short-term debt
• D)the amount that a firm keeps invested in its short-term assets to support its continuing operations which is financed by long-term debt
• E)the amount that a firm keeps invested in its short-term assets which is financed by debt

---

Definitions:

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data and identify any correlations.

Histogram

A graphical representation of the distribution of numerical data, showing the number of data points that fall within specified ranges.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Scatterplot

A type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data.