Fin 340 NAU Exam 2 Questions and
Answers
True/False:Working capital management has to do with managing current asset and current liability
accounts - ANSWER-True
True/False:Working capital management is more important for larger firms than smaller businesses -
ANSWER-False
True/False:There is...
True/False:Working capital management has to do with managing current asset and current liability
accounts - ANSWER✔✔-True
True/False:Working capital management is more important for larger firms than smaller businesses -
ANSWER✔✔-False
True/False:There is a close relationship between growth and the need to finance current assets -
ANSWER✔✔-True
True/False:Small business mainly rely on long-term credit and are not concerned with short-term loans
and trade credit - ANSWER✔✔-False
True/False:There is no consequence to holding large amounts of cash within the firm - ANSWER✔✔-
False
True/False:Firms can profit by holding less cash - ANSWER✔✔-True
True/False:An aggressive working capital policy would finance large amounts of current assets with
mainly long-term debt - ANSWER✔✔-False
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