Which of the following factors does not directly affect the firm's level of investment in working capital?
A) the firm's inventory and credit policies
B) the age of the firm's plant and equipment
C) the firm's sales level
D) the length of the firm's operating cycle

Question

Quizplus · Accepted Answer

The age of the firm's plant and equipment may indirectly affect the firm's investment in working capital by influencing the need for maintenance or replacement, but it is not a direct factor affecting the level of investment in working capital. The other options are direct factors that impact the amount of working capital needed by a company.

Which of the Following Factors Does Not Directly Affect the Firm's