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Question: A quite risky working capital management policy would have a high ratio of:?

(Posted by: Major 38 on 2009-03-08 14:20:38)

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

Answers:

Posted by: Ed Atun on 2009-03-08, 20:06:56

D. A high ratio of debt to equity means that you don't have any reserves. You have borrowed too much..

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