A quite risky working capital management policy would have a high ratio of
A) short-term debt to bonds and equity.
B) short-term debt to total debt.
C) bonds to property, plant, and equipment.
D) short-term debt to equity.

Question

Quizplus · Accepted Answer

A high ratio of short-term debt to bonds and equity indicates a reliance on short-term financing, which is riskier due to the need for frequent refinancing and potential interest rate fluctuations.

A Quite Risky Working Capital Management Policy Would Have a High