If a company moves from a "conservative" working capital policy to an" – McqOptions

MCQOPTIONS

1.	If a company moves from a "conservative" working capital policy to an"aggressive" policy, it should expect __________.
A.	liquidity to decrease, whereas expected profitability would increase
B.	expected profitability to increase, whereas risk would decrease
C.	liquidity would increase, whereas risk would also increase
D.	risk and profitability to decrease
Answer» B. expected profitability to increase, whereas risk would decrease

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