Which of the following working capital policies could be considered to be intermediate risk?
(1) Low levels of working capital, predominantly financed using long-term debt
(2) Low levels of working capital, predominantly financed using short-term debt
(3) High levels of working capital, predominantly financed using short-term debt
A.
Policies (1) and (3)
B.
Policies (2) and (3)
C.
Policy (2)
D.
All three policies
E.
Policy (1)
i am not sure for that one and my tutor at university doesn't upload the answers i will be thankful
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intermediate risk
5y ago#1There is no definition of 'intermediate risk' although I would choose policy 2 for the reasons I explain in my free lectures.
It is ridiculous that your tutor does not provide answers. You should demand answers and explanations otherwise it is all pointless!!
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