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Falak Naz
Falak Naz, Accountant
Category: Finance
Satisfied Customers: 532
Experience:  I am a qualified Chartered Accountant. Currently i am working in financial institution.
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An aggressive working capital policy would have which of following

Customer Question

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

A short average collection period.
     B.

A high ratio of long-term debt to fixed assets.
     C.

A high ratio of short-term debt to long-term sources of funds.
     D.

A low ratio of short-term debt to fixed assets.
Submitted: 7 years ago.
Category: Finance
Expert:  Falak Naz replied 7 years ago.

Hi dogass,

 

ITS C

 

Because in aggressive policy you tend to borrow money on short term rather than long term to reduce the interest payments but its very risky

 

FALAK