Which of the following factors affect the firm's level of investment in working capital?
A)the length of the firm's operating cycle
B)the firm's sales level
C)the firm's inventory and credit policies
D)all of these

Question

Quizplus · Accepted Answer

All of the listed factors affect the firm's level of investment in working capital. 
- The length of the firm's operating cycle can determine how much working capital is needed to cover expenses during that time period. 
- The firm's sales level can also impact the need for working capital, as higher sales may require an increase in inventory or accounts receivable. 
- The firm's inventory and credit policies can directly impact the level of investment in working capital, as these policies determine how much inventory and accounts receivable the firm will have at any given time.

Which of the Following Factors Affect the Firm's Level of Investment