An Aggressive Working Capital Policy Would Have Which of Following

question 49

Multiple Choice

An aggressive working capital policy would have which of following characteristics?

• A) A high ratio of long-term debt to fixed assets.
• B) A low ratio of short-term debt to fixed assets.
• C) A high ratio of short-term debt to long-term sources of funds.
• D) A short average collection period.

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Definitions:

Organizational Focus

The central concentration or specialty of an organization, often determining the scope of its operations and strategies.

Kickoff Meetings

Kickoff meetings are initial meetings that mark the beginning of a project or phase, where goals, expectations, roles, and guidelines are discussed among team members and stakeholders.

Project Office

A physical or virtual location where project management activities and administrative support for a project are centralized.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.