Question

. A firm following an aggressive working capital strategy would * (a) Hold substantial amount of...

. A firm following an aggressive working capital strategy would *
(a) Hold substantial amount of fixed assets
(b) Minimise the amount of short-term borrowing
(c) Finance fluctuating assets with long-term financing
(d) Minimise the amount of funds in very liquid assets

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Answer #1

A firm with working capital strategy which is aggressive in nature should be trying to put minimum amount of its asset in current asset and it would be trying to use the short term capital to an extensive length.

In this case the firm is trying to hold substantial amount of fixed asset, it will mean that firm is not backing away from fixed payments, and it is is lesser use of current assets, it will mean that the company is trying to have a aggressive working capital strategy.

Rest of the options is focused at extensive use of long-term capital.

Correct answer is option ( A).

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