Basically the overall working capital policy decision involves a of alternative policies.
A)profit-risk tradeoff
B)financial choice
C)risk decision
D)none of these

Question

Quizplus · Accepted Answer

The overall working capital policy decision involves a profit-risk tradeoff, which implies making a choice between maximizing profits and minimizing risks. In other words, a company needs to strike a balance between maintaining a sufficient level of working capital to support its operations and investing its excess cash in profitable projects or returning it to shareholders. A company's working capital policy should reflect its overall business strategy, financial position, and risk appetite. Therefore, choosing the right working capital policy is crucial for achieving the company's financial goals and balancing its long-term profitability with short-term liquidity needs.

Basically the Overall Working Capital Policy Decision Involves a of Alternative