When the level of working capital is increased, all of the following are expected to occur except
A)expected profitability decreases
B)expected profitability increases
C)risk decreases
D)none of these

Question

Quizplus · Accepted Answer

When the level of working capital is increased, it is expected that the company will have more funds available for their daily operations, which can lead to an increase in profitability. This is because they will be able to take advantage of more opportunities and make additional sales. Additionally, having more working capital can also help the company manage its cash flow better, reducing the risk of insolvency. Therefore, option B is incorrect.

When the Level of Working Capital Is Increased, All of the Following