Ask Question
BusinessBusiness
29 June, 17:02

Which one of the following is a working capital decision? A. How should the firm raise additional capital to fund its expansion? B. What debt-equity ratio is best suited to the firm? C. What is the cost of debt financing? D. Which type of debt is best suited to finance the inventory? E. How much cash should the firm keep in reserve?

+1
Answers (1)
  1. 29 June, 18:12
    0
    The correct answer is letter "E": How much cash should the firm keep in reserve?

    Explanation:

    Working capital decisions imply working in capital cycles. They take into consideration interest rates, debtors management, and the company's financing in the short run. The working capital decisions also ensure that the organizations have enough cash to pay its bills and determine how much of the cash flow should be stored in the firm's reserve.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which one of the following is a working capital decision? A. How should the firm raise additional capital to fund its expansion? B. What ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Fiscal policy refers to the:A. manipulation of government spending and taxes to stabilize domestic output, employment, andthe price level. B. manipulation of government spending and taxes to achieve greater equality in the distributionof income. C.
Answers (1)
The purpose of the accrual basis of accounting is to:
Answers (1)
Which of the following is the correct mathematical representation of direct labor rate variance (LRV) ? A. Direct labor rate variance = (Actual hourly wage rate - Standard hourly wage rate) * Actual direct labor hours used B.
Answers (1)
Nash Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables.
Answers (1)
Wayne Co. had a decrease in deferred tax liability of $29 million, a decrease in deferred tax assets of $19 million, and an increase in tax payable of $109 million. The company is subject to a tax rate of 25%.
Answers (1)
New Questions in Business
A small number of institutional investors are often able and motivated to bring direct shareholder pressure on a firm's management in an effort to reduce potential agency conflicts. a. True b. False:
Answers (1)
True or false: increasing the confidence level will lead to a wider margin of error.
Answers (1)
Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 19 years to maturity. a.
Answers (1)
What role have public speeches served in ancient societies?
Answers (2)
What is the total annual value of goods and services produced in a country called? A. Gross Domestic Product B. Gross National Product C. Personal Disposable Income D. Gross National Income
Answers (1)
Home » Business » Which one of the following is a working capital decision? A. How should the firm raise additional capital to fund its expansion? B. What debt-equity ratio is best suited to the firm? C. What is the cost of debt financing? D.
Sign Up Forgot Password?