The size of a firm's investment in working capital is a function of all of the following factors except:
A)sales level.
B)inventory policies.
C)credit policies.
D)stockholders equity.

Question

Quizplus · Accepted Answer

Stockholders equity is not directly related to a firm's investment in working capital. Working capital is determined by factors such as sales level, inventory policies, and credit policies, which impact a firm's cash flow and liquidity needs. Stockholders equity, on the other hand, represents the residual interest in the assets of a company after liabilities have been paid off and is not directly related to working capital management.

The Size of a Firm's Investment in Working Capital Is