If a viable firm is not growing but is expected to continue over time,then we would expect changes in net working capital to be equal to:
A)a percentage of total sale.
B)EBIT.
C)depreciation.
D)$0

Question

Quizplus · Accepted Answer

If a firm is not growing, it implies that it is not investing in new projects or making any significant changes in its operations. Therefore, the firm's net working capital would remain relatively stable, and we would not expect any significant changes over time. As a result, the answer is $0.

If a Viable Firm Is Not Growing but Is Expected