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

Question

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An aggressive working capital policy focuses on maximizing short-term cash flow and minimizing the amount of non-operating assets. Therefore, it typically involves a high ratio of short-term debt to long-term sources of funds, as well as a short average collection period to quickly convert receivables into cash. Option A and B are characteristics of a conservative working capital policy which focuses on minimizing risk and maintaining a strong financial position in the long-term.

An Aggressive Working Capital Policy Would Have Which of the Following