Which of the following statements about total capital requirement is least likely to be correct for a profitable firm?

Question

Quizplus · Accepted Answer

Total capital requirement is unlikely to remain constant over time for a profitable firm. As a firm grows and expands, its capital requirements are likely to increase to support its ongoing operations, such as investing in new equipment, hiring additional staff, or expanding into new markets. Therefore, option A is the least likely to be correct. Options B and C are more likely to be accurate as seasonal variations and an upward trend in capital requirements are common for many businesses. Option D is also likely to be correct as a portion of working capital, such as inventory or accounts receivable, may be considered permanent as it is necessary to support ongoing operations.

Which of the Following Statements About Total Capital Requirement Is