When a portion of the firm’s fixed assets are financed with current liabilities, the firm
A. has positive net working capital.
B. has negative net working capital.
C. has excessive amounts of current assets.
D. is in a low-risk position.
Answer:B
When a portion of the firm’s fixed assets are financed with current liabilities, the firm
A. has positive net working capital. B. has negative net working capital. C. has excessive amounts of current assets. D. is in a low-risk position.