The aggressive strategy operates with minimum net working capital since only the permanent portion of the firm's current assets is being financed with long-term funds.

Question

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This statement is true. The aggressive strategy focuses on minimizing net working capital by financing only the permanent portion of the firm's current assets with long-term funds. This allows the firm to have more funds available for growth and investment opportunities. However, this strategy also carries a higher risk as it relies on short-term financing for the remaining current assets.

The Aggressive Strategy Operates with Minimum Net Working Capital Since