A Firm Can Reduce Net Working Capital by Substituting Long-Term

question 99

True/False

A firm can reduce net working capital by substituting long-term financing, such as bonds, with short-term financing, such as an one-year notes payable.

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Definitions:

Center

The midpoint of a geometric shape or object, or the average position of all the points in the shape.

Radius

The distance from the center of a circle to any point on its circumference, or from the center of a sphere to any point on its surface.

Center

A key point that is often the midpoint or origin in geometric figures, such as circles or ellipses, around which symmetry or rotation occurs.

Radius

In geometry, the distance from the center of a circle to any point on its circumference, also half the diameter of the circle.