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.

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.

Correct Answer is C - A high ratio of short-term debt to long-term sources of funds.