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CarlyS
May 24, 2007, 07:03 PM
22. An aggressive working capital policy would have which of following characteristics?
A) A high ratio of long-term debt to fixed assets
B) A low ratio of short-term debt to total debt
C) A high ratio of short-term debt to long-term sources of funds.
D) A short average collection period


I would say the answer is A, but I'm very uncertain about this.. Thanks

Carly S.
harpzach
Apr 9, 2009, 02:02 PM
The answer is B - low ratio of short term debt to total debt. An aggressive working capital policy has less current assets and is financed by larger amount of long term debt.