Sir
Aggressive investment policy
1)It results in higher risk, lower cost and higher profitability, right?
2) But does it lead to longer cash operating cycle or does it lead to shorter cash operating cycle?
Conservative investment policy
3)It results in lower risk, higher cost and lower profitability, right?
4) But does it lead to longer cash operating cycle or does it lead to shorter cash operating cycle?
Ask the Tutor ACCA FM
WC POLICY
Statements 1 and 3 are correct. However the operating cycle is not dependent on the policy.
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