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If a firm has a relatively aggressive current asset financing policy vis-á-vis other firms in its...

If a firm has a relatively aggressive current asset financing policy vis-á-vis other firms in its industry, then its current ratio will probably be relatively high. Is this true? Why or why not?

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Answer:

False,

An agressive current asset financing policy is used when a minimal investment in current assets with short-term credit. The requirement here is to decrease the time needed to produce products. This policy happens when there is little cash on hand which implies lowe current ratio

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