Objective type question.Higher working capital usually results in… - Vidyadip

MCQ

Objective type question.Higher working capital usually results in:

✓
Higher current ratio, higer risk and higher profits.
B
Lower current ratio, higher risk and profits.
C
Higher equitably, lower risk and lower profits.
D
Lower equitably, lower risk and higher profits.

✓

Answer

Correct option: A.

Higher current ratio, higer risk and higher profits.

If the working capital is higher it results in higher current ratio, higher risk and higher profits.

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