Question 1: A decrease in a firm's ration of current liabilities to total assets _______ profitability and _____ risk, as reflected by a ______ in net working capital
a. increases; increases; increase
b. decreases; decreases; increase
c. decreases; decreases; decrease
d. increases; decreases; increase
e. decreases; increases; increase
Question 2: The conservative approach to financing funds requirements suggests financing both short- and long-term needs with _______ funds.
a. Retained earnings
b. Long-term
c. Factoring
d. Accounts payable
e. Accounts receivable financing