Basically, the overall working capital policy decision involves a ____ of alternative policies.
A) profitability-risk trade-off
B) financial choice
C) risk decision
D) None of these are correct

Question

Quizplus · Accepted Answer

The overall working capital policy decision involves a profitability-risk trade-off of alternative policies. This means that a company must weigh the potential profitability of each policy against the level of risk associated with it. The chosen policy should strike a balance between maximizing profitability and minimizing risk to ensure the company's long-term financial health.

Basically, the Overall Working Capital Policy Decision Involves a ____