What Is Permanent Working Capital

question 88

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 are financed by short-term debt
• D) the amount that a firm keeps invested in its short-term assets to support its continuing operations which are financed by long-term debt

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Definitions:

Earnings

The profit or income generated from work, investments, or business operations after deducting expenses.

Mixed Message

A communication that is conflicting or inconsistent, often leading to confusion or misunderstanding.

Verbal Expression

The process of conveying thoughts, feelings, or ideas through spoken words or in written form.

Poor Oral Expression

The difficulty or inability to articulate thoughts and ideas effectively through spoken words.