- Question 5 Which Of The Following Statements Concerning Working Capital Management Are Correct 1 The Twin Objectives 1 (103.96 KiB) Viewed 36 times
Question 5 Which of the following statements concerning working capital management are correct? (1) The twin objectives of working capital management are profitability and liquidity (2) A conservative approach to working capital investment will increase profitability (3) Working capital management is a key factor in a company's long-term success A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3 Question 6 The 'agency problem' refers to which one of the following situations? A. Shareholders acting in their own short-term interests rather than the long-term interests of the company B. A vocal minority of shareholders expecting the directors to act as their agents and pay substantial dividends C. Companies reliant upon substantial government contracts such that they are effectively agents of the government D. The directors acting in their own interests rather than the shareholders' interests