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A company has to produce 100,000 units of output. It has to choose among three policies i.e. policy A, B & C. Policy A

 


A company has to produce 100,000 units of output. It has to choose among three policies i.e. policy A, B & C. Policy A proposes to maintain current assets of worth 10 lacs, policy B of 8 lacs and policy C of 6 lacs. Which policy must the company choose if it has to increase liquidity, or increase profitability or decrease risk? And why? (6 marks)

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